Which of the following is not a potential fraud related to stockholders' equity accounts?
A)Stock sales or issuances are not authorized.
B)Entire loan payments are charged to either principal or interest.
C)Dividends are paid in violation of restrictive covenants.
D)Stock options are back-dated.

Question

Quizplus · Accepted Answer

Charging entire loan payments to either principal or interest is not related to stockholders' equity accounts. The other options are all potential fraud related to stockholders' equity accounts. Unauthorized stock sales or issuances, dividends paid in violation of restrictive covenants, and back-dating stock options can all be used to manipulate the value of stockholders' equity.

Which of the Following Is Not a Potential Fraud Related