The ACFE Estimates That Employee Fraud Costs Small Companies an Average

question 17

Multiple Choice

The ACFE estimates that employee fraud costs small companies an average of:

• A) $60,000 per incident
• B) $120,000 per incident
• C) $240,000 per incident
• D) $480,000 per incident

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Definitions:

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, representing the wear and tear or obsolescence of the asset.

Double-Declining-Balance Method

An accelerated depreciation method in which an asset's book value is reduced by twice the rate of its straight-line depreciation.