In One of the Case Studies in the Textbook, Melissa

question 6

Multiple Choice

In one of the case studies in the textbook, Melissa Robinson, who worked as an executive secretary for a worldwide charitable organization and was active in her children's school, was also a thief. As one of two people allowed to sign checks on the organization's bank accounts, she learned early on that she could forge the second person's signature without anyone becoming suspicious. How was she finally caught?

• A) A co-worker contacted the organization's executive director when she found that a company check had been written to the children's school for Robinson's personal items.
• B) New officers were elected, and they took the accounting books from her.
• C) The auditors discovered her fraud during an annual audit of the books.
• D) Robinson's husband tipped off the audit committee after he became suspicious of some of Robinson's purchases.

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Definitions:

Average Tax Rate

The average tax rate is the proportion of total income paid in taxes, calculated by dividing the total tax amount by the taxpayer’s total income.

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, influencing incremental income earned or deductions.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on free market economies and the concept of 'invisible hand' guiding supply and demand.

Government Duties

Financial charges imposed by the government on goods, services, or activities, primarily focused on imports and exports.