The debt-to-assets ratio is the:
A. proportion of short-term liabilities to total liabilities.
B. ratio of long term liabilities to fixed assets.
C. ratio of total liabilities to total assets.
D. ratio of current liabilities to current assets.
Answer: C
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Which of the following best describes an action that can cause a whistle-blowing system in place in the organization to fail?
a. The organization requires employees to report all suspicious activity. b. The employee suspecting fraud reports directly to his/her supervisor's manager. c. Management is slow to act on reports of suspected fraud. d. An extensive code of ethics is in place and on file in order to answer employee inquiries.
Corrective action is necessary even if a variance is insignificant
Indicate whether the statement is true or false
Cecilia made a check out to Gideon for $15 . Gideon fraudulently changed the check to read $150, and cashed it at Corner Bank. Is Cecilia discharged from liability on the check?
a. Yes, Cecilia owes nothing on the check because alteration of a check is a real defense and real defenses are good even against holders in due course. b. No, Cecilia pays $150 because of the impostor rule. c. No, Cecilia pays $150 because she in not an indorser or accommodation party. d. Yes, Cecilia owes nothing unless Corner Bank is a holder in due course in which case she owes the original $15.