The Primary Way That Fraud Is Prevented and Detected Is

question 63

Multiple Choice

The primary way that fraud is prevented and detected is through a proper system of:

• A)ethical standards and a code of ethics.
• B)policies developed by upper management.
• C)internal control.
• D)internal and external audits.

Recognize the role and determination of authorized stock and its impact on corporate structure and financing.

Differentiate between various equity components within a corporation including common stock, paid-in capital, and treasury stock.

Grasp the factors influencing the initial market price of stock and the role of dividends.

Understand the accounting treatment and valuation of noncash transactions involving stock issuance.

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Definitions:

Ordering Cost

Expenses associated with placing orders for goods or materials, including clerical and administrative costs, transportation, and any costs related to the ordering process itself.

Holding Cost

The expenses associated with storing unsold goods or materials, including storage, insurance, and obsolescence.

Cost-Minimizing Solution

An approach in operations management aimed at finding the least expensive way to achieve a specific objective without compromising on quality.

Economic Order Quantity

A formula used to determine the optimal amount of inventory to order that minimizes total inventory costs.