Employee Embezzlement Can Be Direct or Indirect

question 24

Multiple Choice

Employee embezzlement can be direct or indirect. Indirect fraud occurs when:

• A) an employee uses company assets to run his/her private business.
• B) employees establish dummy companies and have their employers pay for goods that are not actually delivered.
• C) an employee receives a kickback from a vendor.
• D) an employee steals company cash, inventory, tools, or other assets.

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Definitions:

Service Business

A service business is a type of business that provides intangible products or services to customers, as opposed to selling physical goods.

Tax Preparation

The process of compiling and filing income tax returns in compliance with legal requirements, often involving the calculation of taxes owed or refundable.

Merchandising Business

A business that purchases finished goods for resale, making a profit on the difference between buying and selling prices.

Men's Clothing Store

A retail establishment specializing in selling apparel and accessories targeted at the male demographic.