For Each of the Following Statements Numbered 1 Through 5

question 54

Short Answer

For each of the following statements numbered 1 through 5, match the statement to the term (A through D) that it best describes and place the identifying letter in the space provided.
A. Embezzlement or defalcation
B. Management fraud
C. Errors
D. Employee fraud
____ 1. A bookkeeper inadvertently transposed an amount in a journal entry for amortization.
____ 2. An employee in a supermarket takes home bags of fresh fruit every day without paying for them.
____ 3. Embezzlement by pencil or computer.
____ 4. A type of fraud in which employees steal money or property that has been entrusted to their care.
____ 5. The controller changed the journal entry for recording estimated bad debt expense to a smaller amount to hide the poor results from extending credit to high risk customers. This action increased recorded income by a material amount.