Bonding Does Not Discourage Loss from Theft Because Employees Know

question 127

True/False

Bonding does not discourage loss from theft because employees know that bonding is an insurance policy against loss from theft.

---

Definitions:

Functional Currency

The form of money used in the main economic region where a business is active and conducts its dealings.

Net Exchange Differences

The net result of gains or losses on foreign currency transactions and translation of foreign operations, reflecting the impact of exchange rates fluctuations on financial statements.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Revaluation Gain

An increase in the value of an asset over its previously recorded book value, recognized after a revaluation process.