If Employees Are Bonded

question 91

Multiple Choice

If employees are bonded

• A) it means that they are not allowed to handle cash.
• B) they have worked for the company for at least 10 years.
• C) they have been insured against misappropriation of assets.
• D) it is impossible for them to steal from the company.

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Definitions:

Positive Wealth

A situation where the total value of all owned assets exceeds any liabilities, leading to a net positive financial position.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the cost of capital or investment risk.

Mutually Exclusive

Scenarios or occurrences that are incapable of happening simultaneously.

Average Accounting Return

A financial ratio indicating the average net income an asset is expected to generate compared to its average capital cost.