Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 22

Which of the following regarding Krispy Kreme's round-trip transactions is not correct? (a) Krispy Kreme engaged in contrived equipment sales to franchisees.
(b) The transactions inflated franchise reacquisition purchase prices.
(c) The transactions resulted in the reporting of overstated net income.
(d) The transactions overstated expenses in the income statement.