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NEW QUESTION 40
Which of the following is NOT the aspect of inventory purchase?

• A. might be some fraud scheme in inventory.
• B. Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.
• C. Inventory purchases purposely increase in year 1 only to be liquidated in year 2.
• D. inventory for the year 2 will be much greater than year 1.

Answer: D

NEW QUESTION 41
The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

• A. Asset requisition
• B. Fake sales
• C. Inventory usages
• D. All of the above

Answer: A

NEW QUESTION 42
The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

Answer:

Explanation:
Price-level adjusted historical cost

NEW QUESTION 43
Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

• A. Placing empty boxes on warehouse shelves
• B. All of the above
• C. Selling merchandise without recording the sale
• D. Falsely increasing the perpetual inventory figure

Answer: A

Explanation:
Explanation/Reference: https://www.informit.com/articles/article.aspx?p=2101527&seqNum=4#:~:text=Perpetrators%
20have%20been%20known%20to,conceal%20the%20theft%20of%20inventory

NEW QUESTION 44
Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

• A. All of the above
• B. Short-term skimming
• C. Concealing the fraud
• D. Converting stolen checks

Answer: B

NEW QUESTION 45
......