​Which of the Following Is NOT True Regarding Why Fraud

question 18

Multiple Choice

​Which of the following is NOT true regarding why fraud prevention controls are important?

• A)​Preventing fraud also saves the family of the perpetrator from embarrassment (guilt by association).
• B)​Once the fraud has been committed, the cost of any legal action taken can cause the victims to lose even more.
• C)​The organization that isn't proactive about possible fraud is more likely to have an employee commit a fraud act.
• D)​Fraud control costs are less than the known costs that would have been lost through fraud.

Analyze the elasticity of demand in relation to pricing strategies and firm competition.

Understand the difference in pricing and output decisions between monopolistic and competitive firms.

Recognize economic inefficiencies associated with monopolies, including allocative and productive inefficiencies.

Identify the consequences of monopoly power on consumer welfare and market efficiency.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life, used for accounting and tax purposes.

Double Declining-Balance Depreciation

A method of accelerated depreciation which doubles the rate at which an asset’s book value depreciates compared to straight-line depreciation.

Annual Depreciation Expense

The portion of the cost of a fixed asset that is charged as an expense in a particular fiscal year, as a result of wear, tear, and obsolescence.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over the expected life of the asset.