Which of the Following Is Correct Concerning "Window Dressing" for Cash

question 41

Multiple Choice

Which of the following is correct concerning "window dressing" for cash?

• A)A segregation of duties within the cash function effectively eliminates its occurrence.
• B)It generally involves manipulation of inventory.
• C)It is illegal,and an audit is designed to provide reasonable assurance of its detection.
• D)It may increase but not falsify cash position.

---

Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Statement of Financial Position

Another term for a balance sheet, it provides a snapshot of a company's assets, liabilities, and shareholder equity at a specific point in time.

Net Working Capital

The difference between a company's current assets and its current liabilities, measuring its short-term financial health and its ability to cover short-term obligations.

Accounts Receivable

Accounts receivable represents the money owed to a company for goods or services delivered or used but not yet paid for by customers.