When Two or More People Get Together for the Purpose

question 79

Multiple Choice

When two or more people get together for the purpose of circumventing prescribed controls, it is called

• A)fraud prevention.
• B)collusion.
• C)a division of duties.
• D)bonding of employees.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, including cash, inventory, and property, plant, and equipment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment.

Operating Income

Revenue from business operations after operating expenses and before interest and taxes.

Transfer Prices

Prices charged for the sale of goods or services between departments or subdivisions of the same company.