Fraud Prevention Saves the Most Money Because __________

question 54

Multiple Choice

Fraud prevention saves the most money because __________.

• A) No fraud means no investigation cost
• B) No fraud means no detection cost
• C) No fraud means no litigation cost
• D) All of the above

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Definitions:

Temporary Investments

Securities or assets that a company intends to sell within a short period, typically one year, to generate income.

Net Receivables

The amount of money expected to be received from all outstanding accounts receivable after deducting allowances for doubtful accounts.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Short-Term Investments

Investments that are made with the expectation of converting them into cash within a short period, usually one year or less.