Fraud Is Any and All Means a Person Uses to Gain

question 17

Multiple Choice

Fraud is any and all means a person uses to gain an unfair advantage over another person.Current and former employees of an organization are much more likely to perpetrate fraud than external parties.The act by a person or group of persons resulting in materially misleading financial statements is called a(n)

• A)misappropriation of assets.
• B)employee fraud.
• C)fraudulent financial reporting.
• D)theft of assets.

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Definitions:

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Long-term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate, with the expectation of generating long-term benefits.

Accrued Interest

Interest that has been earned but not yet paid or received in cash.

Semiannual Interest

Interest calculated or paid twice a year on loans, bonds, or savings accounts.