Which of the Following Would Be an Indicator of Potential

question 75

Multiple Choice

Which of the following would be an indicator of potential fraud?

• A)Photocopies of invoices in the voucher file
• B)Vendor invoices in numerical order
• C)Vendors with only post office box addresses
• D)All of these indicate potential fraud.

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Definitions:

Debt to Assets

A financial ratio that measures the proportion of a company’s total debt to its total assets, indicating the degree of leverage.

Financed by Creditors

A phrase indicating that a portion of a company's funding or assets has been obtained through borrowing from lenders.

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.