Exam 13: Liability, Asset, and Inadequate Disclosure Frauds

Which method is NOT used to overstate assets?

All of the following adjustments can be used to understate accounts payable EXCEPT:

Disclosure frauds occur through misrepresentations about the company or through what other intentional act?

Which ratio will increase when accounts payable is not recorded?

Which asset is probably the most difficult to overstate under normal audit procedures?

Which ratio is helpful in understanding whether the relationship between cash and marketable securities is reasonable in relation to current assets or total assets?

When does inadequate disclosure occur?

It is usually easier to detect inadequate disclosure fraud that involves disclosures than it is to detect disclosure fraud that involves disclosures.

Recognizing unearned revenue as earned revenue is an example of which type of fraud?

In liability fraud, liabilities are most often:

How is a contingent liability reported if it is considered "reasonably possible?"

Which of the following is a documentary symptom that relates to all kinds of understatement of liability fraud?

You observe that a company's current ratio has increased significantly. What could this indicate?

All of the following are indicators of financial statement fraud EXCEPT:

Which of the following items listed provide the best opportunity to find contingent liabilities that should be recorded?

In case of deferred revenue liabilities, when should revenues almost always be recorded as earned?

Which of the following statements is FALSE?

Which of the following is NOT helpful in detecting inadequate disclosure fraud?

Which of the following will NOT understate liabilities?

Capitalizing costs that should be expensed: