One of the Ways to Prevent the Use of Fictitious

question 1

Multiple Choice

One of the ways to prevent the use of fictitious vendors to steal company funds is by

• A)having adequate network access controls to prevent unauthorized access to transaction files.
• B)ensuring that accounts payable programs are available only in source code.
• C)having software automatically check for duplicate invoice numbers before payment.
• D)having authorized personnel carefully scrutinize documentation supporting payments.

---

Definitions:

Total Asset Turnover

An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally reflects good overall management.

Efficiently

Performing tasks in the most effective way with the least waste of time and effort.

Assets

Economic resources owned or controlled by an individual or organization that are expected to produce positive economic value.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.