A Simple Method for Catching or Preventing Many Types of Employee

question 10

Multiple Choice

A simple method for catching or preventing many types of employee fraud is to

• A) monitor all employee behavior using video cameras.
• B) require all employees to take annual vacations.
• C) explain to employees that fraud is illegal and that it will be severely punished.
• D) monitor employee bank accounts and net worth.

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Definitions:

Carrying Amount

The amount at which an asset or liability is recognized on the balance sheet after deducting any accumulated depreciation, amortization, or impairment.

Fair Value

An estimate of the price at which an asset or liability would be traded between knowledgeable, willing parties in an arm's length transaction.

Costs To Sell

The direct costs attributable to the disposition of an asset, excluding finance costs and income taxes.

Impairment Loss

A charge to the income statement that occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future economic benefits.