Diane Wants to Take Corrective Measures to Prevent Future Theft

question 24

Multiple Choice

Diane wants to take corrective measures to prevent future theft. Which one of the following is a feedback tactic that Diane could use to control theft?

• A) use the services of professional investigators
• B) openly communicate the costs of stealing
• C) use corporate hotlines for reporting incidents
• D) educate and train employees about the policies

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Definitions:

Impairment of Assets

A decrease in the recoverable value of an asset below its carrying amount, leading to an adjustment of its valuation on the balance sheet.

Financial Position

The status of the assets, liabilities, and equity of an entity as detailed in the balance sheet, indicating the entity’s economic resources and obligations at a given time.

AASB 101

The Australian Accounting Standards Board guideline concerning the presentation of financial statements.

Corporations Act

A major legislation regulating corporate entities in some jurisdictions, detailing rules on incorporation, management, shareholders, and financial reporting.