An example of fraud would be:
A) Issuing a purchase order without first securing bids.
B) Buying raw materials from an affiliated company.
C) Knowingly classifying a material long-term receivable as a current receivable.
D) Forgetting to accrue salaries and wages payable.

Question

Quizplus · Accepted Answer

Knowingly classifying a material long-term receivable as a current receivable is an example of fraud. It involves misrepresenting financial data, which is intentional and deceptive. While the other options may be accounting mistakes or ethical violations, they do not necessarily rise to the level of fraud.

An Example of Fraud Would Be