QUESTION 13 Expensing an on item only on the tax return that should becapitalized for tax purposes a
QUESTION 13 Expensing an on item only on the tax return that should becapitalized for tax purposes and for financial statements (such asthe purchase of equipment which should be depreciated over itsuseful life and not expensed) will decrease net income. True False QUESTION 14 You shouldn’t report revenue if the shipment was sent to aseller’s agent or to an installer as opposed to the ultimatepurchaser as the delivery of product has not yet occurred. True False QUESTION 15 Fraudulent financial statements can be used to sell stock orbonds to investors or to obtain loans and other forms of credit andto show financial results that improve management compensation andbonuses. True False QUESTION 16 Intentional omission of disclosures or presentation ofinadequate disclosures regarding accounting principles and relatedfinancial amounts is a type of financial statement fraud. True False QUESTION 18 A company has a signed contract for a credit sale of product toa customer but has not specified a price to be charged. The producthas been delivered and therefore the company book the revenue. True False QUESTION 19 Channel stuffing should be looked at with a very skeptical eyeby auditors because the buyer does not take delivery. True False 50. Match the fraudulent financial statement action with theharm it does. _____ Lots of financial statement fraud covered in the news.Public has great concerns over the financial data that itconsumes. _____ Corporation and auditors are being brought to court as aresult of class action suits brought by small and large investorswho have been misled. D. Huge litigation cost and contingent liabilities. E. Erosion of public confidence and trust in the accountingprofession. . . .