A Government Accountant Suspects Someone Within the Government Is Embezzling

question 21

Multiple Choice

A government accountant suspects someone within the government is embezzling cash.Which of the following statements is most true?

• A)The government would not pass a compliance audit.
• B)An investigative audit will confirm the accountant's suspicion.
• C)Both the government would not pass a compliance audit and an investigative audit will confirm the accountant's suspicion are true.
• D)Neither the government would not pass a compliance audit nor an investigative audit will confirm the accountant's suspicion is true.

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Definitions:

Coupon

The yearly payment of interest to those holding bonds, represented as a percentage of the bond's nominal value.

Semi-Annual Coupon

A bond payment made to bondholders twice a year, representing interest on the bond's face value.

Effective Annual Yield

The actual interest rate an investment earns in a year, taking into account the effects of compounding.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.