11. Accrual-basis of accounting requires revenue to be recorded 16. Per the Froud Examiners Manual, what is channel-stuffing? A when a company receives cash related to a sale. 8. when a company has earned the revenue (generally, when goods are delivered or services are rendered) and cash is received when a company has earned the revenue (generally, when goods are delivered or services are rendered), without regard to when cash exchanges hands. D. when a company signs a legally binding sales agreement. A. The premature recognition of revenue by manipulation of the percentage-of-completion and the estimated costs to complete a construction project. B. The sale of an unusually large quantity of a product to distributors who are encouraged to overbuy through the use of discounts or extended payment terms. C. Billing for products that are still held in inventory D. All of the above are examples of channel-stuffing. 12. Per the Fraud Examiners Manual, which of the following shows a snapshot" of a company's financial position at a specific point in time? A. The Balance Sheet. B. The Income Statement C. The Statement of Cash Flows D. All of the above 17. Per the Fraud Examiners Manual, which of the following may be considered related-parties that require disclosure A. Common directors of two companies that do business with each other B. A corporate general partner and the partnerships with which it does business. C. A controlling shareholder of the corporation with which he.sh/it does business D. All of the above may considered related parties 13. Per the Fraud Examiners Manual, which of the following best describes the most common use of fraudulent financial statements? A to decrease the apparent prosperity of an organization in order to negotiate lower pay for union employees. B. to increase the apparent prosperity of an organization in the eyes of their employees C. to increase the apparent prosperity of an organization in order for the executives to receive greater compensation and bonuses. D. to increase the apparent prosperity of an organization in the eyes of potential and current investors 18. Per the Fraud Examiners Manual, which of the following is a technique for analyzing the percentage change in individual financial statement items from one period to the next? A. Vertical analysis. B. Horizontal analysis. C. Ratio analysis D. Cross-sectional analysis 14. Which accounting principle requires expenses be recorded in the same 19. Per the Fraud Examiners Manual, which of the following would help accounting period as revenues they help generate? A. Conservatism B. The going concern principle C. The matching principle D. The historical cost principle discourage the perpetration of financial statement fraud? A. Reducing the situational pressures that encourage financial statement fraud B. Reducing the opportunity for commit fraud. C. Reducing the rationalization of fraud by strengthening employee personal integrity D. All of the above. 5. Which of the following is one of the ACFE's five classifications of financial statement fraud schemes? A. Bribery B. Asset misappropriation. C. Payroll schemes D. Fictitious revenues 20. Per the Fraud Examiners Manual, which of the following is, "by far the most common of all occupational frauds"? A. Billing schemes. B. Bribery. C. Asset misappropriations. D. Financial statement fraud