Anderson Embezzled $20,000 from Her Company's Account in Bank X

question 6

Multiple Choice

Anderson embezzled $20,000 from her company's account in Bank X.At year-end,she hid the shortage by making a deposit on December 31 in Bank X,drawn on Bank Y.She has not recorded the transaction on the books.Which of the following is most likely to be effective in detecting this fraud?

• A)Bank confirmation.
• B)Bank transfer schedule prepared using only the cash receipts and cash disbursements journals.
• C)Comparison of bank cutoff statement to the cash receipts and disbursements records.
• D)Receivable confirmation.

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Definitions:

Diversification

An investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce risk.

Protection

Economic policy measures, such as tariffs and quotas, used to limit imports in order to protect domestic industries.

Worse Off

A situation in which an individual or group is in a less favorable or more disadvantageous position than before.

International Trade

entails the exchange of goods and services across international borders or territories, influenced by comparative advantages, exchange rates, and global economic policies.