Recording Assets That the Company Does NOT Possess Is an Example

question 40

Multiple Choice

Recording assets that the company does NOT possess is an example of:

• A)management fraud.
• B)employee fraud.
• C)collusion.
• D)embezzlement.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

NPV

NPV, or Net Present Value, is a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.