Writing Off Inventory and Other Assets Is a Relatively Common

question 30

True/False

Writing off inventory and other assets is a relatively common way for fraudsters to remove assets from the books before or after they are stolen.

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Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Blue-Sky Laws

are state regulations designed to protect investors against securities fraud by requiring the registration of securities offerings and disclosure.

Federal Securities Regulations

Laws and regulations established at the federal level aimed at protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation.

Registration Statement

A set of documents, including a prospectus, required by regulatory authorities before a company can issue stock to the public.