Which of the Following Statements, Regarding Ethical Considerations in an Accounting

question 87

Multiple Choice

Which of the following statements, regarding ethical considerations in an accounting information system is false?

• A)The accounting information system is often the tool used to either commit or cover up unethical behavior.
• B)If there is only one person within the organization with responsibility for maintaining the computer systems, it is not difficult to detect instances of computer fraud.
• C)Fraud could be perpetrated and go undetected for a long time if the accounting information system is not carefully monitored.
• D)If accountants are well informed about the risks of unethical behavior, they will be better prepared to control those risks.

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Definitions:

Quick Assets

Highly liquid assets, including cash, accounts receivable, and marketable securities, which can be quickly converted into cash.

Short-Term Investments

Short-term investments are financial assets that are expected to be converted into cash within one year and are typically used by firms to manage surplus cash efficiently.

Current Receivables

Short-term financial assets that are due to be received within one year, typically from customers who owe the company money for goods or services provided.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.