WGU C254 Topic 7 Questions | Questions with 100% Correct Answers | Verified | Latest Update

With asset-based financial statement frauds, assets are most often: - Overstated Which of the following is a way to commit asset fraud? a. Overstating fixed assets b. Under-recording payroll taxes c. Over-recording contingent liabilities d. Recording sales discounts too high - Overstating fixed assets The WorldCom fraud was primarily an example of which type of fraud? - Overstatement of asset fraud Which of the following is not a common way in which companies overstate their assets during a merger or acquisition? a. Inappropriately use market values instead of book values. b. Improperly allocate book values to assets. c. Under-record various liabilities. - Under-record various liabilities. Which of the following ratios is not useful in detecting overstatement of asset fraud? a. Individual fixed asset account balances/Total fixed assets. b. Fixed asset/Total current liabilities. c. Total deferred charges/Total assets