Fraud Examination 4th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht ,Mark Zimbelman

Exercise 32

You observe that a company's current ratio is dramatically increasing. This may indicate fraud in that:
A) Probable contingent liabilities that will settle in the next year for an amount that can be estimated are not recorded.
B) Accounts payable are understated.
C) Expenses have been inappropriately capitalized as fixed assets.
D) Fixed assets are overstated.
E) Two of the above are true.