Cash Larceny Involves

question 43

Multiple Choice

Cash larceny involves

• A)stealing cash from an organization before it is recorded
• B)stealing cash from an organization after it has been recorded
• C)manufacturing false purchase orders, receiving reports, and invoices
• D)paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for changes in non-cash accounts to calculate cash from operating activities.

Operating Activities

Activities directly related to the operation of the business, including cash flows from operations, investing, and financial activities.

Direct Method

A cash flow statement preparation approach that shows the specific cash inflows and outflows associated with the operating activities.

Cash Received

The actual cash gathered by a company from its various activities, including sales, financing, or investing, during a particular period.