Forces Which May Permit Fraud to Occur Do Not Include

question 74

Multiple Choice

Forces which may permit fraud to occur do not include

• A)a gambling addiction
• B)lack of segregation of duties
• C)centralized decision-making environment
• D)questionable integrity of employees

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Definitions:

Raw Materials Inventory

The total cost of all component materials currently in stock that have not yet been used in work-in-process or finished goods production.

Work in Process Inventory

Work in process inventory consists of products that are in the production process but are not yet completed, representing a stage between raw materials and finished goods.

Raw Materials Inventory

The total cost or value of all the basic materials and components that are to be used in the manufacture of a product.

Accounts Payable

Liabilities owed to suppliers or creditors for goods and services received but not yet paid for.