In One of the Case Studies in the Textbook, Marcus

question 22

Multiple Choice

In one of the case studies in the textbook, Marcus Lane, a geologist for an environmental management and engineering services firm, traveled all over North and South America as part of his job, resulting in numerous expense reimbursements. Unfortunately, Lane went too far and began to double book his air travel using his personal credit card. He booked two separate flights to the same location, but with a huge cost difference. He used the cheaper ticket for the actual flight and returned the more expensive ticket for credit. And, of course, he submitted the more expensive ticket for reimbursement. What changes to internal controls were made as a result of Lane's fraud?

• A) Enforcement of a new policy that business expenditures other than travel be charged to personal credit cards only
• B) Clarification and better enforcement of the policy that all travel be booked through the company travel agent using a designated company credit card
• C) Enforcement of a new policy that employees submit their travel expense reports for reimbursement within five days of returning from a trip
• D) All of the above

Understand the role of empirical reasoning in social science inquiry.

Comprehend the characteristics of sound arguments and conclusions in social science analysis.

Understand the fundamental differences between different types of calipers and their specific uses.

Comprehend the operational principles of disc and drum brakes, including their advantages and limitations.

---

Definitions:

Financing Activities

Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends.

Investing Activities

Financial transactions related to acquiring or selling investments and long-term assets, detailed in a company's cash flow statement.

Cash

Cash refers to the amount of currency a business or individual has on hand, including money in bank accounts and liquid securities.

Cash Flow

The total amount of money being transferred into and out of a business, particularly in terms of liquid assets.