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:

Incentive Program

A formal scheme used by businesses to promote or encourage specific actions or behaviors by a specific group of people within a certain time period through rewards.

Certain Dollar Amount

A specific, predetermined monetary value used in financial transactions, budgets, or to set financial thresholds.

Benefits

Advantages or positive outcomes that contribute to the well-being or interest of individuals or organizations.

Critical-Incident Technique

A method used in management and psychology to analyze specific incidents that significantly contribute to an outcome, to understand better how to encourage positive or mitigate negative events.