Which of these is a common type of fraud on financial statements?

Question

Quizplus · Accepted Answer

Overstating inventory is a common type of fraud on financial statements because it leads to an inflated value of assets on the balance sheet, which can result in higher profits and better financial performance. It may be done by purposely counting more inventory than what is actually available or valuing the inventory at a higher value than its actual worth. This type of fraud can be detrimental to investors and stakeholders who may make decisions based on false information.

Which of These Is a Common Type of Fraud on Financial