An Employee Intercepts a Legitimate Check Made Payable to a Vendor

question 23

True/False

An employee intercepts a legitimate check made payable to a vendor and changes the payee name to his name. This is an example of a forged maker.

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Definitions:

Available-For-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, measured at fair value with changes recognized in other comprehensive income.

Realized Gain

is the profit made from selling an asset at a higher price than its purchase cost, officially recognized once the transaction is completed.

Fair Value

The value obtained for disposing of an asset or incurred in transferring a liability during a regulated deal among market entities on the date of measurement.

Net Income

The amount of profit left after all operating expenses, taxes, and interest are paid, indicating a company's financial performance over a specific period.