Final answer:
The most likely fraudulent entry to conceal the theft of an asset is to debit expenses and credit the asset (Option C), as this masks the theft by making it appear like a legitimate business expense.
Step-by-step explanation:
The question relates to the methods of fraudulent financial reporting, specifically regarding the concealment of the theft of assets in accounting. When an individual intends to conceal the theft of an asset in a company's financial records, they might create a fraudulent entry that does not directly reflect the removal of the asset.
The correct answer to which entry is most likely to be made to conceal the theft of an asset is C. Debit expenses and credit the asset. This is because expenses increase with debits and decrease assets with credits. By recording a false expense, the individual can hide the fact that assets are missing, thus making it look like the assets were legitimately used up as part of the company's operations.