Which of the following possible actions may discourage an employee to report suspected fraudulent activities?
a. Management promises no prosecution of the individual if guilty.
b. Corporate security's number is provided.
c. The number of the internal auditor is provided.
d. Corporate management stresses that any information provided will be kept confidential.
a
FEEDBACK: a. Correct, if there will be no prosecution, the employee may feel it is useless to report the suspected fraud.
b. Incorrect, this may encourage reporting a suspicious activity.
c. Incorrect, this may encourage reporting a suspicious activity.
d. Incorrect, this may encourage reporting a suspicious activity.
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When the direct write-off method of recognizing bad debt expense is used, the entry to write off a specific customer account would
a. increase net income. b. have no effect on net income. c. increase the accounts receivable balance and increase net income. d. decrease the accounts receivable balance and decrease net income.
The doctrine of res ipsa loquitur would permit the court to infer negligence in which of the following situations?
a. A ladder rung broke under the weight of a worker's foot. b. A sign over a storefront fell on your head. c. A patron of a restaurant slipped on a wet spot on the floor and hit her head on a chair. d. All of these.
The Credit Card Fraud Act does not contain criminal penalties for violations of its provisions
Indicate whether the statement is true or false
Yanni's Yachts has created a specially designed awning for its boats. Yanni's did not patent the awning. Dream Boats purchased one of Yanni's boats and then copied the awning from the boat it purchased from Yanni. A) Dream Boats has appropriated a trade secret
B) Dream Boats has appropriated a patent because a patent need not be registered to be valid. C) Dream Boats has misappropriated Yanni's awnings. D) None of the above