If a Check Is Made Payable to Cash, Detection of the Fraudster

question 27

True/False

If a check is made payable to cash, detection of the fraudster is made more difficult.

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Definitions:

Nonoperating Activities

Nonoperating activities involve the revenues and expenses that are not related to the core operations of a business.

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.

Net Sales

The total revenue generated from goods or services sold by a company, minus returns, allowances, and discounts.

Gross Profit

The financial result obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.