WGU C254 Topic 8 Final Exam Questions and Actual Detailed Answers Edition.

Which of the following types of frauds are considered the most difficult to find, usually requiring a tip? a. Overstatement of asset-related financial statement fraud. b. Inadequate disclosure financial statement fraud. c. Revenue-related financial statement fraud. d. Cost of goods sold-related financial statement fraud. - Answer Inadequate disclosure financial statement fraud. Inadequate disclosure fraud usually involves: - Answer Omitting disclosures that should have been made in the footnotes. Which of the following statements about detecting inadequate disclosure fraud is true? a. Missing disclosures are harder to detect than misleading disclosures. b. The symptoms for detecting disclosure fraud are the same as for all other types of fraud. c. Organizations that are involved in inadequate disclosure fraud often reveal too much transparency in their footnote disclosures. d. All of the above - Answer Missing disclosures are harder to detect than misleading disclosures Which of the following is not one of the three categories of disclosure fraud discussed in the chapter? a. Overall misrepresentations about the nature of the company or its products. b. Misrepresentation in management discussions and other non financial statement sections of annual reports c. Misrepresentations in the footnotes to the financial statements. d. Explicit and implicit misrepresentations to SEC investigators. - Answer Explicit and implicit misrepresentations to SEC investigators. The ratio "income from operations less cash flow from operations divided by income from operations" should generally be: - Answer Slightly negative Which of the following is not a common method used to perpetrate disclosure fraud? a. Incorrectly disclosing contingent gains that are probably not going to occur.