An Employee Claims That He Overstated Expense Reimbursement Requests to Have

question 31

Multiple Choice

An employee claims that he overstated expense reimbursement requests to have extra money for his wife and children because "Everyone is doing it." This is an example of:

• A)opportunity.
• B)motive.
• C)rationalization.
• D)understanding.

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Definitions:

Common Tools

Generic equipment or instruments used across various jobs or tasks, not specialized for any particular profession or activity.

Comparative Balance Sheet

Financial statements that present the financial position of a company at different points in time for comparison.

Common-Size Percentages

Financial analysis tool that converts income statement and balance sheet figures to percentages of a common base for comparison purposes.

Trend Percentages

An analysis technique that involves calculating the percentage change for a financial statement item over multiple periods to identify any patterns.