The Expenditure Cycle Is Especially Prone to a Risk of Employee

question 59

True/False

The expenditure cycle is especially prone to a risk of employee fraud through unauthorized disbursement of cash.

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Definitions:

Ability-To-Pay Principle

A tax principle that suggests taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.

Revenue

The cumulative revenue produced from transactions involving the main business activities, such as selling goods or services.

Local Governments

Public administrations operating at the municipal, township, county, or regional level that manage local affairs, regulations, and services.

Property Tax

A levy on property that the owner is required to pay, with the amount usually based on the property's value.