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| Which of the following is an example of fraudulent financial reporting? A. The treasurer diverts customer payments to his personal use, concealing his actions by debiting an expense account, thus overstating expenses. B. Company management improperly records as revenue the proceeds of a loan. C. An employee bills his company for products not received, using the name of a fictitious supplier. D. An employee steals inventory and the "shrinkage" is recorded in cost of goods sold. |