Which of the Following Is an Example of Misappropriation of Assets

question 53

Multiple Choice

Which of the following is an example of misappropriation of assets resulting in a misstatement in the balance sheet?

• A) Cash from a cash sale was stolen, and the transaction was not recorded.
• B) Assets were stolen, and the misappropriation was discovered.
• C) Cash collected from a customer was stolen, and the account receivable for the customer's account was not credited.
• D) both A and C

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Definitions:

Top Management

The highest-level executives in an organization, responsible for strategic planning and decision-making.

Middle Management

A level of management in organizations typically responsible for implementing the policies and plans of senior management and overseeing the activities of low-level management.

Integration

The act of combining or coordinating separate elements or units into a more cohesive and effective whole.

Executive Team

A group of top-level managers and executives who work together to develop and implement strategic plans for an organization.