According to the 2012 Global Fraud Study of the ACFE

question 53

Multiple Choice

According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is:

• A) Internal audit
• B) Management review
• C) External audit
• D) Tip

Calculate gross profit, net income, and understand their implications on financial performance.

Apply knowledge of periodic and perpetual inventory systems in accounting entries.

Understand and calculate discounts, including sales discounts and purchase discounts.

Recognize the impact of inventory transactions on financial statements.

---

Definitions:

Short Run

A period in economics during which at least one factor of production is fixed in quantity; the opposite of the long run, where all factors of production are variable.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a specific target market.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.