Fraudulent Accounting Practices Do Not Just Occur in Firms Who

question 239

Multiple Choice

Fraudulent accounting practices do not just occur in firms who do not have on site accountants. According to the Legal Briefcase box provided in your textbook, illegal and questionable accounting practices have been the demise of some large multi-national corporations. The professionals assigned to investigate these improprieties are:

• A)forensic accountants
• B)certified public accountants
• C)independent auditors
• D)certified financial planners

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Definitions:

Predicted

Anticipated or expected based on current trends or data analysis.

Internal Growth Rate

The maximum rate at which a firm can expand its operations without obtaining additional financing, driven by reinvestment of its earnings.

Plowback Ratio

A financial metric that measures the proportion of earnings retained by a company after dividends have been paid out to shareholders.

Dividend Payout

The fraction of a firm's earnings allocated to its shareholders through dividends.