The General Type of Fraud That Involves Some Form of Theft

question 49

Multiple Choice

The general type of fraud that involves some form of theft is typically known as _______.

• A)misappropriation of assets
• B)improper asset valuation
• C)fictitious sales
• D)unrecorded liabilities

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Liability

A company's financial debt or obligations that arise during business operations, to be settled over time through the transfer of economic benefits.

Owner Contribution

Capital injected by the owners into the business, increasing equity.

Creditor

An individual or institution that lends money or extends credit to another party, expecting to be repaid the principal amount along with interest or to receive goods and services.