Explain the shell company fraud
A shell company fraud first requires that the perpetrator establish a false supplier on the books of the victim company. The fraudster then manufactures false purchase orders, receiving reports, and invoices in the name of the vendor and submits them to the accounting system, which creates the allusion of a legitimate transaction. Based on these documents, the system will set up an account payable and ultimately issue a check to the false supplier (the fraudster).
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An aging schedule typically categorizes the various accounts by the length of time each invoice is outstanding
a. True b. False Indicate whether the statement is true or false
An operating loss carryforward occurs when
A) prior pretax financial income is insufficient to offset the current period operating loss. B) prior taxable income is insufficient to offset the current period operating loss. C) future pretax financial income is insufficient to offset a current period operating loss. D) future taxable income is insufficient to offset a current period operating loss.
Gnome Company is deciding whether to continue to manufacture a component or to buy the component from a supplier. Which of the following is relevant to this decision?
A) the potential uses of the facilities that are currently used to manufacture the component B) the insurance on the manufacturing facility that will continue regardless of the decision C) fixed costs that do not differ between the alternatives D) the cost of the equipment that is currently being used to manufacture the component
Canadian provinces provide for ___________________________________ and instant elections to establish a union.
Fill in the blank(s) with the appropriate word(s).