Question

An example of fraud would be:___________. 1. Forgetting to accrue salaries and wages payable. 2. Knowingly classifying a material noncurrent receivable as a current receivable. 3. Issuing a purchase order without first securing bids. 4. Buying raw materials from an affiliated company.

Answer 1

Answer:

2. Knowingly classifying a material non-current receivable as a current

Explanation:

Fraud is said to occur when a person deliberately or intentionally uses misleading, improper, false information or data in a financial or legal document with the so aim and attempt to unlawfully deprive another person or entity of money, property, or legal rights for their own selfish interests and benefits.