​Which of the Following Acts by Management Could Discourage Someone

question 32

Multiple Choice

​Which of the following acts by management could discourage someone from reporting an observed act of fraud?

• A)​providing clear instructions of who to contact
• B)​providing assurance of anonymity
• C)​providing clear instructions on how to convey the information
• D)​providing a clear list of possible consequences

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Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding costs of production or manufacturing.

Prepaid Expenses

Payments made in advance for goods or services, which are recorded as assets until they are actually used.

Noncash Investing

Investment activities that do not involve the immediate outflow of cash but may involve the exchange of non-cash assets or liabilities.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the company’s shareholders’ equity account.