Exam 13: Liability, Asset, and Inadequate Disclosure Frauds

Which of the following is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management?

If marketable securities increase, then cash should usually decrease by a similar amount, since cash was probably used to purchase the securities. An exception to this occurs when:

What is the easiest way to identify understatement of liability fraud exposures?

Which of the following applies to a "cookie jar?"

Analytical symptoms for unrecorded notes and mortgages payable include which of the following?

Inadequate disclosure generally occurs through misrepresentations about the nature and products of the company through which means?

Which of the following is NOT a symptom of liability fraud?

Why are overstated reserves sometimes referred to as "cookie jar" reserves?

When examining whether a company has underrecorded accounts payable, all of the following ratios are helpful EXCEPT:

With liability fraud, which of the following is most likely to occur?

Which type of fraud will not have any analytical symptoms?

Which ratio will increase in a liability fraud?

In asset fraud, assets are most often:

Which of the following is an example of liability fraud?

What are pension liabilities?

Which of the following is least important when concerned about overstatement of assets through a merger?

Which of the following expenditures would be most suspicious if it were capitalized?

In dealing with capitalized costs, what should be done when deferred charges of interest exist on the balance sheet?

Which of the following observations is NOT true with respect to analytical symptoms?

No mention of the contingent liability needs to be made in the financial statements, if the probability of payment is: