Free CFEX Exam Braindumps (page: 19)

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People commit financial statement fraud to:

  1. Conceal false business performances
  2. Preserve personal status/control
  3. Maintain personal income
  4. Stand outside the accounting system

Answer(s): B



Which of the following is NOT the reason why senior management will overstate business statement?

  1. Comply with debit covenants
  2. Meet personal performance criteria
  3. Trigger performance related compensation
  4. Show a pattern of growth to support sale of a business

Answer(s): A



__________assumes the business will go on indefinitely in the future.

  1. Materiality
  2. Going concern
  3. Cost
  4. Fair value

Answer(s): B



The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

  1. Absolute value
  2. Fair value
  3. Cost value
  4. material value

Answer(s): B






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