If an Employee Steals Cash from a Company and Successfully

question 74

Multiple Choice

If an employee steals cash from a company and successfully covers up his/her actions by recording a fictitious debit to Accounts Payable and a credit to Cash, then

• A) Liabilities will be overstated
• B) Liabilities will be understated
• C) Assets will be overstated
• D) Assets will be understated

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Definitions:

Stimulants

Substances that increase alertness, attention, and energy by accelerating the activity of the central nervous system.

Narcotics

Substances that induce sleep, relieve pain, and can cause changes in consciousness, potentially leading to addiction.

Meditation

A practice of focused attention, mindfulness, or contemplation to achieve a mentally clear and emotionally calm state.

State of Consciousness

The level of awareness of oneself and the environment, which can range from alertness to sleep to altered states.