One Failure with Respect to the Internal Controls at Tyco

question 55

Multiple Choice

One failure with respect to the internal controls at Tyco and Adelphia was:

• A) Falsification of bank statement balances
• B) Top executives manipulated financial statement amounts
• C) Top executives used hundreds of millions of dollars from interest-free loans for personal purposes
• D) Top management engaged in a Ponzi scheme

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Definitions:

Market Value

The present rate at which a service or asset is available for purchase or sale on the open market.

Straight Line

A depreciation method where an asset loses value evenly across its useful life.

Tax Rate

The percentage at which an individual or corporation is taxed.

Market Value

The current price at which an asset or service can be bought or sold in the market.