WGU C254 Practice Review Questions
and Answers Latest Version (2024/2025)
Already Passed
What is considered fraud in a business context?
A) Deliberate misrepresentation of information to gain an unfair advantage.
B) Providing inaccurate information unintentionally.
C) Offering discounts to loyal customers.
D) Reporting accurate financial data to investors.
✔✔A) Deliberate misrepresentation of information to gain an unfair advantage.
Which of the following is an example of employee fraud?
A) An employee falsely reporting hours worked to receive unearned wages.
B) A company releasing accurate financial statements.
C) A business offering a refund for damaged goods.
D) An employee reporting accurate information on their tax returns.
✔✔A) An employee falsely reporting hours worked to receive unearned wages.
What is a common consequence of fraud within a business?
1
,A) Increased employee morale and trust.
B) Legal actions, fines, and reputational damage.
C) More customers seeking the business’s services.
D) Improved financial performance.
✔✔B) Legal actions, fines, and reputational damage.
Which of the following can help detect fraud in a company?
A) Regular audits and checks on financial records.
B) Offering large bonuses to employees without oversight.
C) Ignoring employee complaints about unethical behavior.
D) Allowing employees to manage their own budgets without restrictions.
✔✔A) Regular audits and checks on financial records.
What type of fraud involves manipulating financial statements to mislead stakeholders?
A) Asset misappropriation.
B) Financial statement fraud.
C) Procurement fraud.
D) Identity theft.
2
,✔✔B) Financial statement fraud.
Which of the following is a preventive measure for fraud?
A) Implementing proper internal controls and segregation of duties.
B) Allowing employees to access financial information without restrictions.
C) Ignoring whistleblower reports.
D) Limiting communication among employees.
✔✔A) Implementing proper internal controls and segregation of duties.
What is the primary goal of forensic accounting in fraud investigations?
A) To find new ways to increase revenue.
B) To investigate financial discrepancies and uncover fraudulent activity.
C) To create new business partnerships.
D) To train employees on ethical practices.
✔✔B) To investigate financial discrepancies and uncover fraudulent activity.
What is an example of asset misappropriation fraud?
A) An employee stealing money from the cash register.
3
, B) A company reporting inflated revenue figures.
C) A vendor submitting false invoices for payment.
D) An employee giving out confidential information.
✔✔A) An employee stealing money from the cash register.
Which of the following is a key characteristic of fraud?
A) The intentional use of deception for personal or financial gain.
B) The use of legal loopholes to avoid tax payments.
C) The accidental loss of business funds.
D) Regular and honest errors in business operations.
✔✔A) The intentional use of deception for personal or financial gain.
How can businesses prevent fraud involving credit card transactions?
A) By implementing strong password protection and monitoring for unusual activity.
B) By allowing all employees to use the company credit card for personal expenses.
C) By issuing unlimited credit to trusted employees.
D) By not tracking employee spending on credit cards.
✔✔A) By implementing strong password protection and monitoring for unusual activity.
4
and Answers Latest Version (2024/2025)
Already Passed
What is considered fraud in a business context?
A) Deliberate misrepresentation of information to gain an unfair advantage.
B) Providing inaccurate information unintentionally.
C) Offering discounts to loyal customers.
D) Reporting accurate financial data to investors.
✔✔A) Deliberate misrepresentation of information to gain an unfair advantage.
Which of the following is an example of employee fraud?
A) An employee falsely reporting hours worked to receive unearned wages.
B) A company releasing accurate financial statements.
C) A business offering a refund for damaged goods.
D) An employee reporting accurate information on their tax returns.
✔✔A) An employee falsely reporting hours worked to receive unearned wages.
What is a common consequence of fraud within a business?
1
,A) Increased employee morale and trust.
B) Legal actions, fines, and reputational damage.
C) More customers seeking the business’s services.
D) Improved financial performance.
✔✔B) Legal actions, fines, and reputational damage.
Which of the following can help detect fraud in a company?
A) Regular audits and checks on financial records.
B) Offering large bonuses to employees without oversight.
C) Ignoring employee complaints about unethical behavior.
D) Allowing employees to manage their own budgets without restrictions.
✔✔A) Regular audits and checks on financial records.
What type of fraud involves manipulating financial statements to mislead stakeholders?
A) Asset misappropriation.
B) Financial statement fraud.
C) Procurement fraud.
D) Identity theft.
2
,✔✔B) Financial statement fraud.
Which of the following is a preventive measure for fraud?
A) Implementing proper internal controls and segregation of duties.
B) Allowing employees to access financial information without restrictions.
C) Ignoring whistleblower reports.
D) Limiting communication among employees.
✔✔A) Implementing proper internal controls and segregation of duties.
What is the primary goal of forensic accounting in fraud investigations?
A) To find new ways to increase revenue.
B) To investigate financial discrepancies and uncover fraudulent activity.
C) To create new business partnerships.
D) To train employees on ethical practices.
✔✔B) To investigate financial discrepancies and uncover fraudulent activity.
What is an example of asset misappropriation fraud?
A) An employee stealing money from the cash register.
3
, B) A company reporting inflated revenue figures.
C) A vendor submitting false invoices for payment.
D) An employee giving out confidential information.
✔✔A) An employee stealing money from the cash register.
Which of the following is a key characteristic of fraud?
A) The intentional use of deception for personal or financial gain.
B) The use of legal loopholes to avoid tax payments.
C) The accidental loss of business funds.
D) Regular and honest errors in business operations.
✔✔A) The intentional use of deception for personal or financial gain.
How can businesses prevent fraud involving credit card transactions?
A) By implementing strong password protection and monitoring for unusual activity.
B) By allowing all employees to use the company credit card for personal expenses.
C) By issuing unlimited credit to trusted employees.
D) By not tracking employee spending on credit cards.
✔✔A) By implementing strong password protection and monitoring for unusual activity.
4
