Fraud Is Often Used as the Basis for Product Liability

question 50

True/False

Fraud is often used as the basis for product liability actions.

---

Definitions:

Internal Control Procedures

These are policies and procedures put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Short and Over

An account that stores any discrepancies between the expected cash count and the actual amount of cash present, reflecting errors or theft.

Other Income

Revenue generated from activities that are not part of a company's primary business operations, including interest, dividends, and gains from asset sales.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.