What Is a Concealment of Assets Fraud

question 23

Multiple Choice

What is a concealment of assets fraud?

• A) It is when a business physically hides assets from investigators during an inventory of assets.
• B) It is when debtors move large amounts of cash or other assets out of the business in anticipation of filing for bankruptcy.
• C) It is when creditors move large amounts of cash or other assets out of the business in anticipation of filing for bankruptcy.
• D) It is the selling of assets in order to increase cash reserves during a bankruptcy filing.

---

Definitions:

Salary Allowances

Fixed amounts paid to employees in addition to their regular salary to cover specific needs or expenses, such as travel or living expenses.

Withdrawal

The act of removing funds from a bank account or the process of taking assets out of a business by its owner for personal use.

Partnership Assets

Assets owned by a partnership that are used for carrying out its business activities.

Capital Balances

The amount of money that partners or owners have invested in a business, which may change over time with the addition of profits or the deduction of losses and withdrawals.