Which of the Following Is an Example of a Misappropriation

question 27

Multiple Choice

Which of the following is an example of a misappropriation of assets fraud?

• A) Unauthorized discounts or refunds to customers
• B) Inappropriate application of accounting principles
• C) Unrecorded liabilities
• D) Improper asset valuations

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Definitions:

Debt

Debt is an amount of money borrowed by one party from another, to be repaid usually with interest.

Subjective Approach

A method or judgement based on personal feelings, tastes, or opinions rather than external facts or evidence.

Discount Rates

Interest rates used in discounted cash flow analysis to determine the present value of future cash flows.