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Gelneren [198K]
3 years ago
8

You were asked to investigate extremely high, unexplained merchandise shortages at a department store chain. Classify each of th

e five situations as a fraudulent act, an indicator of fraud, or an event unrelated to the investigation. Justify your answers. (Adapted from the CIA Examination) a. The receiving department supervisor owns and operates a boutique carrying many of the same labels as the chain store. The general manager is unaware of the ownership interest.
Business
1 answer:
Nutka1998 [239]3 years ago
8 0

Answer:

(a) INDICATOR OF FRAUD

Explanation:

The reason is that the supervisor has an outside business setup related to the department's setup which gives rise to a conflict of interest.

You might be interested in
One year ago, Debra purchased 5,400 shares of KNF stock for $218,056. Today, she sold those shares for $19.49 a share. What is t
kramer

Answer:

Capital gain yield will be -51.73%

So option (d) will be the correct answer

Explanation:

We have given that Debra purchased 4500 shares of KNF stock for $218056

So price of one share =\frac{218056}{5400}=$48.380

So the beginning price = $40.380

She sold the share at price of 19.49 per share

So ending price = $19.49

We have to find the capital gain yield

We know that capital gain yield is given by

Capital gain yield =\frac{end\ price-beginning\ price}{begninning \ price}=\frac{19.49-40.380}{40.390}=-51.73 %

So option (d) will be correct option  

7 0
3 years ago
Retained earnings represents: Multiple Choice Amount of cash available for paying dividends. Total assets minus total liabilitie
kotegsom [21]

Answer:

All net income, less all dividends, since the company began operations.

Explanation:

Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.

Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.

Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.

4 0
3 years ago
After earning $30 million in net income, Rolatrim Industries distributed $5 million in dividends to their stockholders. The boar
ValentinkaMS [17]

Answer:

retained earnings        

Explanation:

In simple words, Retained earnings refers to the amount from net profits left available to the company after the owners have taken out dividends. The determination to maintain the profits or disperse them to the owners is typically left mostly to administration of the company.              

Although this is done by the declaration of income, the net benefit is still included both in the income statement as well as the cash flow statements. This are not paid to shareholders as dividends but are rather used for new funding back into the company..

8 0
4 years ago
Sarasota Company sold $8,780 of its specialty shelving to Elkins Office Supply Co. on account. Bridgeport estimates that an addi
Debora [2.8K]

Answer:

See explanation section.

Explanation:

A) Accounts Receivable                                              $8,780    

   Sales Revenue                                                                      $8,780

<em>Sarasota Company sold its specialty shelving to Elkins Office Supply Co. on account.</em>

(b) Sales Returns and Allowances                              $215  

Allowances for Sales Returns and Allowances                      $215

<em>To record an additional $215 in allowances to Elkins. </em>

(c) Allowance for Sale Returns and Allowances        $706  

Accounts Receivable                                                               $706

<em>To record an allowance of $706 when some of the shelving does not meet exact specifications. It means the products were damaged or defected.</em>

6 0
4 years ago
Which dr. Seuss book has sold the most copies worldwide?
likoan [24]

Answer:

Green eggs and ham

Explanation:

he sold over 8,100,000 coppies

8 0
4 years ago
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