Which of the Following Is the Best Way to Hide

question 41

Multiple Choice

Which of the following is the best way to hide theft of assets?

• A) creating "cash" through the transfer of money between banks
• B) conversion of stolen assets into cash
• C) stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable
• D) charging the stolen asset to an expense account

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Definitions:

Raw Material

Basic substances in their natural, modified, or semi-processed state used as inputs to a production process for manufacturing goods.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, which includes raw materials, work-in-progress, and finished goods.

Merchandise Purchases

The acquisition of goods that a company intends to sell in its normal course of business; this includes goods bought for resale.

Cost Of Goods

The total direct costs attributable to the production of the goods sold by a company.