Which of the Following Is an Advantage of Having Investigation

question 640

Multiple Choice

Which of the following is an advantage of having investigation conducted by in-house security staff?

• A) Cheaper as a general rule, depending on number of check being done
• B) In-house staff is better trained
• C) In-house staff has better grasp as to objective of the investigation
• D) In-house staff has better sources of information
• E) None of the above

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Definitions:

Direct Write-off Method

An accounting method where uncollectible debts are written off to expense only when they are determined to be uncollectible.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Receivables

Amounts owed to a company by its customers arising from the sale of goods or services on credit.

Bad Debt Expense

An estimated expense that represents accounts receivable that a company does not expect to collect due to customer defaults.