What of the Following Makes the Net Worth Method Ineffective

question 20

Multiple Choice

What of the following makes the net worth method ineffective in some situations?

• A)It gives a conservative estimate of stolen funds which are not readily accepted as evidence by courts.
• B)It rarely facilitates obtaining confessions from the suspects.
• C)When people have income, they either purchase additional assets, pay off liabilities, or improve their lifestyle, thus increasing living expenses.
• D)Embezzlers typically spend their money on food, jewelery, vacation, and other luxuries that are difficult to track.

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Definitions:

Treasury Stock

Shares that were once a part of outstanding stock but were bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Implied

Suggested or inferred from actions or statements, rather than being explicitly stated.

Federal Regulations

Laws and rules imposed by federal government agencies to regulate various activities and industries across the country.

Corporation

A legal entity separate from its owners, with its own rights and liabilities, allowing it to own assets, incur debts, and enter into contracts.