Roger Created a Fraudulent Online Shopping Web Site for Sports

question 35

Multiple Choice

Roger created a fraudulent online shopping Web site for sports equipment. In order to make purchases on that Web site, customers had to submit their bank details. Roger did not deliver any products to customers and misused their bank details to transfer money to his own bank account. As a result of a lawsuit filed against him, Roger was sentenced to prison. In this scenario, Roger is most likely to be placed in a _____.

• A) maximum-security prison
• B) supermax prison
• C) medium-security prison
• D) minimum-security prison

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Definitions:

Cash Realizable Value

The amount of money that can be received from assets or receivables through normal collection processes.

Allowance Method

A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.

Credit Sales

Sales made by a business where payment is delayed as per agreed terms, allowing the buyer to purchase goods or services on credit.

Allowance for Doubtful Accounts

A financial account used by companies to account for the percentage of accounts receivable that may not be collected due to customer defaults.