Fraud has a direct dollar for dollar impact on a company's:
A)Revenues.
B)Net income.
C)Profit margin.
D)Stock price.

Question

Quizplus · Accepted Answer

Fraud directly impacts a company's net income, as fraudulent activities result in increased expenses and decreased revenues, both of which can lower a company's profits. A decrease in net income also affects a company's earnings per share, which can ultimately impact its stock price. However, fraud may not necessarily have a direct impact on a company's revenues or profit margin, as these may remain unchanged if the company is able to recover the losses caused by fraud through other means.

Fraud Has a Direct Dollar for Dollar Impact on a Company's