The Most Efficient Way to Conceal Asset Misappropriation Is to

question 56

Multiple Choice

The most efficient way to conceal asset misappropriation is to

• A) write-off a customer receivable as bad debt.
• B) alter monthly bank statements before reconciliation.
• C) alter monthly physical inventory counts to reconcile to perpetual inventory records.
• D) record phony payments to vendors.

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Definitions:

Wedge Brakes

An air foundation brake system in which an air chamber forces a wedge between brake shoes forcing them into a brake drum to effect retarding force. Wedge brakes are usually actuated on both sides (unlike S-cam brakes) and so have higher theoretical braking efficiencies.

Maintenance Costs

The expenses associated with keeping an item, equipment or property in its best operating condition, including repairs, replacements, and routine check-ups.

Dry Cement

A powdery substance made by calcining lime and clay, used with water to make concrete, mortar, or plaster.

Dry Bulk Pressure Hopper

A container designed for transporting dry bulk materials, utilizing pressurized air to aid in the unloading process.