WGU D551 PRE-ASSESSMENT: FRAUD AND FORENSIC ACCOUNTING (JAC2) (PJAC) QUESTIONS WITH CORRRECT AND VERIFIED ANSWERS|2025

WGU D551 PRE-ASSESSMENT: FRAUD AND FORENSIC ACCOUNTING (JAC2) (PJAC) QUESTIONS WITH CORRRECT AND VERIFIED ANSWERS|2025 Which action is potentially unethical because it understates COGS? A. Understating purchases B. Understating purchase returns C. Understating ending inventory D. Understating purchase discounts - Correct Answer A Why is it unethical for a supervisor to ask an accountant to capitalize the marketing research program? A. this action overstates assets B. this action overstates expenses C. this action understates liabilities D. this action understates net income - Correct Answer A How can financial statement fraud impact stakeholders? A. investors may experience lower interest rates B. fraud can be an embarrassment to the audit profession C. investors may be more willing to purchase new stock issues D. fraud can lead to stock options decreasingly being used for executive compensation - Correct Answer B How do fraudulent financial statements impact stakeholders and the markets? A. financial statement fraud leads to embezzlement B. interest rates rise as a result of financial statement fraud C. financial statement fraud leads investors to lose confidence D. CEOs acquire additional company stock following financial statement fraud - Correct Answer C What is a consequence of financial statement fraud? A. the organization shows losses due to embezzlement B. red flags prove that fraud occurred in the organization C. suppliers are able to take advantage of the organization D. the organization appears more profitable than it actually is - Correct Answer D