Bonding Involves All of the Following except

question 135

Multiple Choice

Bonding involves all of the following except

• A)The company obtains insurance protection against misappropriation of assets by a dishonest employee.
• B)The insurance company screens employees before they are added to the policy.
• C)The company informs employees that the insurance company will vigorously prosecute all offenders.
• D)Employees do not commit inappropriate acts because of the threat of prosecution and their loyalty to the employer.

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Definitions:

365-Day Year

A calendar method that assumes each year has 365 days for the purpose of interest calculation, ignoring leap years.

Milling Machine

A tool used in machining processes for shaping metal and other solid materials, utilizing rotary cutters to remove material.

Ordinary Simple Interest

Interest calculated only on the principal amount, not on the interest that accrues over time.

360-Day Year

An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.