Which of the Following Would Be Considered Financial Statement Fraud

Multiple Choice

Which of the following would be considered financial statement fraud (knowingly making material misrepresentations of fact with the intent of making someone believe the falsehood and suffer a loss as a result of acting upon that falsehood) ?

A) Increasing the returns allowance as a result of unusually high sales near year end.
B) Transferring non-performing assets at historical values to a non-consolidated subsidiary.
C) Employee theft from petty cash.
D) Purchasing several months' supply of office supplies in order to qualify for a large volume discount.