An Employee Enters the Work Place on a Day Off

question 30

Multiple Choice

An employee enters the work place on a day off and utilizes the leased plotter/printer for four hours to produce graphics for his child's school play. The lease payment is $80 per hour and his wages are $20 per hour. Select the correct statement from the choices below.

• A) This is an abuse at the assumed value of $400.
• B) This is an instance of fraud at the assumed value of $400.
• C) This is an abuse at the assumed value of $320.
• D) This is an instance of fraud at the assumed value of $320.

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.

Note Receivable

A financial asset representing the right to receive a specific amount of money, either on demand or at a specified future date.

Company's Records

Documentation and files that contain important information about a company's operations, financial transactions, and legal obligations.

Outstanding Checks

Checks that have been written and recorded in the issuing entity's accounting system but not yet cashed or cleared by the bank.