Question

All of the following are possible ways to commit fraud by using a payroll scheme EXCEPT:

(A) overstating expenses.
(B) falsifying hours worked.
(C) creating ghost employees.
(D) producing false worker compensation claim.

Answer 1

The correct answer is letter "A": overstating expenses.

Step-by-step explanation:

For accounting record-keeping, the company's expenses are not included within the labor direct costs. Expenses refer to all those expenditures a company may incur as a result to handle businesses and pursuing to keep it going. Those transactions are recorded in the income statement.