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Which of the following is the best example of fraudulent financial reporting?Multiple ChoiceAn employee diverts customer payments to his personal use, concealing his actions by
Which of the following is the best example of fraudulent financial reporting?Multiple ChoiceAn employee diverts customer payments to his personal use, concealing his actions by debiting an expense account, thus overstating expenses. An employee steals inventory and the "shrinkage" is recorded in cost of goods sold. An employee "borrows" tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense. An employee overstates accounts receivable by overstating sales at yearend.
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