Which of the Following Situations Might Allow an Employee to Steal

question 29

Multiple Choice

Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

• A) Checks are not restrictively endorsed when received.
• B) Only one signature is required on the organization's checks.
• C) One employee handles both accounts receivable and purchase orders.
• D) One employee handles both cash deposits and accounts payable.

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Definitions:

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in an economy and the level of interest rates.

Equilibrium Interest Rate

The interest rate at which the supply of funds (savings) equals the demand for funds (loans), resulting in market equilibrium.

Quantity of Money

The total amount of money in circulation or in existence within a specific economy.

Monetary Policy

Actions of a central bank, currency board, or other regulatory authorities that determine the size and rate of growth of the money supply, which in turn affects interest rates.