单选题

If a company reported fictitious revenue, it could try to cover up its fraud by（）。

A、 decreasing assets.
B、 increasing liabilities.
C、 creating a fictitious asset.

【正确答案】 C

【答案解析】

In order to balance the accounting equation, the company would eitber need to increase assets or decrease liabilities. Creating a fictitious asset would be one way of attempting to cover up the fraud.