Which of the Following Is the BEST Example of a Register-Disbursement

question 4

Multiple Choice

Which of the following is the BEST example of a register-disbursement scheme?

• A) A perpetrator who processes transactions as if a customer were returning merchandise, even though there is no actual return.
• B) A perpetrator uses the expense register to falsely record expenses that are then paid out by the A/P department.
• C) A perpetrator physically prepares a check from the check register claiming it is a legitimate expense when it is not.
• D) A perpetrator slowly takes money from the register drawer after making regular sales - often showing that a discount was given to a customer on the receipt.

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Definitions:

Amortization

The process of gradually writing off the initial cost of an asset over a period. It's often used in the context of loan repayments or spreading the cost of an intangible asset over its useful life.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received that have not yet been paid for.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Impairments

Reductions in the recoverable value of fixed assets or goodwill on a company’s balance sheet, indicating that the asset is not worth its currently stated value.