Which of the Following Are Examples of the Misappropriation of Assets

question 39

Multiple Choice

Which of the following are examples of the misappropriation of assets?

• A)An employee overstates an expense reimbursement request after a company trip.
• B)An employee theft of inventory.
• C)A kickback scheme in the purchasing function.
• D)all of the above

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Definitions:

Outstanding Cheques

Cheques issued by a company that have not been deposited or cashed by the recipient by the end of the accounting period.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price, reflecting the ability of a company or individual to meet immediate and short-term obligations.

Precautionary Motive

The desire to hold cash or other liquid assets to meet unexpected needs and financial emergencies.

Financial Slack

The availability of excess funds or resources in a company that allows for flexibility in operations, strategic investments, or weathering financial uncertainties without immediate financial stress.