Practice Quiz

Forensic Accounting

Category - Specialized Forensic Knowledge

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How does inclusive fraud affect cost of goods sold?
  1. It is understated
  2. It is overstated
  3. Overstated for one period, then understated the next
  4. No change
Explanation
Answer: A - In regards to inclusive fraud, cost of goods sold is understated on the Statement of Comprehensive Income. Profit is shown at an increased amount due to such an understatement.
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