Occupational Fraud

question 17

Multiple Choice

Occupational fraud:

• A)Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources.
• B)Occurs in only a few organizations and generally involves minor amounts.
• C)Will be prevented when companies employ an auditor.
• D)Is committed only by lower-level employees.

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Definitions:

Cash Payments

Outflows of cash from a company to settle debts, purchase goods or services, or make investments.

Cash Account

An account recording the amounts of cash received and paid out in transactions.

Credit

A financial term denoting the provision of money, goods, or services with the expectation of future payment.

Consuming Goods

The action of using up goods or products, thereby reducing inventory.