What Can Make It Easy for an Employee to Skim

question 88

Multiple Choice

What can make it easy for an employee to skim sales or receivables?

• A) Revenue sources and recording procedures
• B) Poor collection and recording procedures
• C) Internal audits and recording procedures
• D) Register manipulations and recording procedures

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Definitions:

Price/Earnings Ratio

A metric that measures the relationship between a company's stock price and its per-share earnings, providing insight into the market's valuation of the company.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Cash Coverage Ratio

A liquidity ratio that measures a company’s ability to pay off its debt with cash and cash equivalents, indicating financial health.

Operating Activities

The section of a company's cash flow statement that reveals the cash generated or used in the company’s primary business operations.