Mandy Calls a Local Newspaper and Pretends to Be a Neighbor

question 38

Multiple Choice

Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter. She obtains account history and orders the newspaper for six months. Has Mandy committed a fraud? If yes, under which act?

• A) No, the newspaper has not yet been delivered or paid.
• B) Yes, she is in violation of the Gramm-Leach-Bliley Act of 1999.
• C) No, as the neighbor has not served any written notice to keep the information private.
• D) Yes, she is in violation of Fair and Accurate Credit Transactions Act of 2003.

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Definitions:

Performance Report

A document that compares actual results to planned or budgeted results, often used in business to assess performance.

Actual Production

The measure of the quantity of goods or services produced by a company during a specific period.

Flexible Budget

A flexible budget adjusts according to the actual levels of activity experienced, allowing for more accurate comparisons of budgeted to actual performance.

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.