Which of the Following Is a Correct Statement Regarding the Misappropriation

question 59

Multiple Choice

Which of the following is a correct statement regarding the misappropriation of receipts involving revenue?

• A) One of the easiest frauds to detect is when a sale is not recorded and the cash from the sale is stolen.
• B) If a customer's payment is stolen, regular billing of unpaid accounts can uncover the fraud unless the fraud perpetrator does something to hide the theft.
• C) Misappropriation of cash receipts is generally as material as fraudulent reporting of revenues.
• D) Analytical procedures can detect relatively small thefts of sales and related cash receipts.

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Definitions:

Lawrence Kohlberg

Lawrence Kohlberg was an American psychologist best known for his theory of stages of moral development, which suggests that moral reasoning matures through a series of stages as individuals grow.

Preconventional

The first level of Kohlberg's stages of moral development, where moral reasoning is based primarily on consequences of actions and external rewards and punishments.

Piagetian Period

Stages of cognitive development identified by psychologist Jean Piaget, through which children progress as they grow older.

Preconventional Morality

The first level in Kohlberg's stages of moral development, where behavior is driven by the desire to avoid punishment or gain reward.