Reference - Angry Employee

question 11

Multiple Choice

Reference - Angry employee. Martin is in charge of payroll and other expenses for ABC, Inc. He becomes very angry with his boss Adam because Adam started dating Martin's girlfriend Stacy. Martin decided to quit but not before he got some extra money from ABC, Inc. Martin wrote five checks from the account of ABC, Inc. to pay off the five credit card companies that Martin owed money. The credit card companies took the checks without reason to be suspicious as to the source of payment. The checks to the credit card companies in total amounted to $30,000, and each check was in an amount under $10,000. Martin also made out ten checks on the account of ABC to twenty alleged employees who did not really exist. Each of these checks was in the amount of $5,000. Martin took the checks, endorsed and cashed the checks in the names of the various fake employees, and kept the cash. Finally, Martin discovers through office gossip that Adam has been looking for another job with XYZ, Inc. located in a neighboring state and that Adam is supposed to go there for an in person interview in a few weeks. Martin sets up an interview with XYZ, Inc. pretends to be Adam, and induces XYZ, Inc. to give him, posing as Adam, a check for $5,000 as a signing bonus. Martin immediately endorses the check pretending to be Adam and pockets the cash. Finally, Martin leaves town heading for the Caribbean. Is XYZ, Inc. entitled to a refund from its bank for the check the bank paid to Martin posing as Adam?

• A) Yes, because Martin forged Adam's name.
• B) Yes, because Martin posed as an imposter in regard to Adam.
• C) Yes, because the XYZ, Inc. has a cause of action against Martin and can likely get a default judgment.
• D) No, because of the imposter rule.
• E) No, because of the fictitious-payee rule.

Recognize the importance and methods of analyzing a company's performance and financial condition over time.

Understand the significance of financial ratios in evaluating a company's performance.

Identify key financial ratios including price-earnings ratio and dividend yield.

Describe different ways financial ratios can be expressed.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that held by an organization or in a financial institution.

Total Asset Turnover Ratio

The total asset turnover ratio measures how efficiently a company uses its assets to generate sales, calculated by dividing revenue by total assets.

Sales Revenue

Income received from selling goods or services over a period of time.

Total Assets

Total assets encompass all the resources owned by a company, valued in monetary terms, which include both current and noncurrent assets.