Check Tampering Is Unique Among the Disbursement Frauds Because

question 6

Multiple Choice

Check tampering is unique among the disbursement frauds because:

• A) the fraud perpetrator processes the transaction as if a customer were returning merchandise, even though there is no actual return.
• B) it is the one group of schemes in which the perpetrator physically prepares the fraudulent check.
• C) it is the one group of schemes in which the culprit generates a payment to himself or herself by submitting some false document to the victim company, such as an invoice or a timecard.
• D) the perpetrator does not have to undergo the risk of taking company cash or merchandise.

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Definitions:

Differential Cost

The difference in total cost between two alternatives, used in decision-making processes.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.

Discretionary Cost

Costs that are not essential for the operation of a home or business and can be adjusted or eliminated depending on financial circumstances.

Condensed Income Statement

A simplified financial statement that summarizes revenues, costs, and expenses to show a company's net income over a specific period.