An Example of Fraudulent Financial Reporting Is the Treasurer's Diversion

question 22

True/False

An example of fraudulent financial reporting is the treasurer's diversion of hundreds of thousands of dollars into a personal money market account.

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Definitions:

Prospectus

A document that companies issue to potential investors, detailing the financial performance and risks involved in an investment offering.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Net Worth

The total value of all assets owned by an individual or entity minus any liabilities or debts, representing the owner's equity in those assets.

Insider Trading

The illegal or legal trading of a public company's stock or other securities by individuals with access to nonpublic information about the company.