The Fraud at Tyco Included Each of the Following Acts

question 55

Multiple Choice

The fraud at Tyco included each of the following acts except for:

• A) Benefits given to certain members of the board of directors to secure their silence about the fraud
• B) Corporate assets used by members of top management for personal purposes
• C) Setting up special-purpose-entities to keep debt off Tyco's books
• D) Related party transactions that were not adequately disclosed

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Definitions:

Error Score

The difference between observed values and the values predicted by a model or measure, indicating measurement error or variance.

True Score

The score that, if it could be observed, would reflect the actual ability or behavior being measured. See Observed score.

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable within a certain period.

Inventory Turnover

An index that displays the number of times a firm's inventory turns over and is replenished during a specific period.