Final answer:
Fraud perpetrators who manipulate accounting records to conceal embezzlements do not typically attempt to balance the accounting equation by recording expenses.
Step-by-step explanation:
False. Fraud perpetrators who manipulate accounting records to conceal embezzlements typically do not attempt to balance the accounting equation by recording expenses. Instead, they may manipulate other aspects of the financial statements, such as assets, liabilities, or revenues, to hide their illegal activities.
For example, a fraudster might overstate assets or understate liabilities to make the financial position of the company appear stronger than it actually is. They might also record fictitious revenues or manipulate revenue recognition timing to inflate the company's performance. By doing so, they try to deceive stakeholders, such as investors or lenders, and cover up their embezzlements.
Recording expenses is not a common method used by fraud perpetrators because it does not directly impact the accounting equation or balance sheet. It is more likely that they focus on other areas to manipulate the financial records and misrepresent the true financial position of the organization.