Employee embezzlement can be direct or indirect. Indirect fraud occurs when:
a. an employee uses company assets to run his/her private business.
b. employees establish dummy companies and have their employers pay for goods that are not actually delivered.
c. an employee receives a kickback from a vendor.
d. an employee steals company cash, inventory, tools, or other assets.
c
FEEDBACK: a. Incorrect. This is not an example of indirect fraud.
b. Incorrect. This is not an example of indirect fraud.
c. Correct.
d. Incorrect. This is not an example of indirect fraud.
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In ______ error, the rater evaluates everyone or nearly everyone as below average.
A. severity or strictness B. halo C. leniency D. central tendency
Use the following information for questions 1-5: Stan's Surf Shack purchased five surfboards for $200 each. Later it purchased two additional surfboards for $250 each. Stan's sold a total of six surfboards during the period for $350 cash each. The company uses the perpetual inventory system and has not yet accrued any income taxes for the period. Indicate how the event described in the question affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in
that same element.) Stan's purchased the first five surfboards on account. AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows??????? What will be an ideal response?
Quite often in a VMI system, the inventory is
A) owned by the retailer before it is shipped by the supplier. B) owned by the supplier until it is sold by the retailer. C) sold by the supplier before it is owned by the retailer. D) sold by the retailer before it is shipped by the supplier.
Bonds are always a safe investment if held to maturity
Indicate whether this statement is true or false.