For a small business, a good way to prevent or detect fraud is<u> B. Owner involvement</u> in the business.
<h3>What is a small business?</h3>
A small business can be defined as a privately owned corporation, partnership, or sole proprietorship with fewer employees and less annual revenue than a large business.
Five types of small businesses have been identified as follows:
- Sole proprietorship
- Partnership
- Corporation
- S Corporation
- Limited liability company.
Given the employment and revenue profiles of small businesses, they may not afford to detect or prevent fraud by the segregation of duties as required by internal controls.
Hiring CPA Auditors and trusted employees only cannot help small businesses prevent or detect fraud.
Thus, the best way for a small business to prevent or detect fraud is by the involvement of the owner in the business.
Learn more about small businesses and internal controls at brainly.com/question/14473430
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Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Credited
Explanation:
Equity Account <em>increase</em> on the credit side and <em>decrease </em>on the debit side.
So, when the account increased, we say it has been credited. This means further stock has been issued to new or existing owners.
Answer:
$112,500
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation expense in year 1 = 2/4 x $450,000 = $225,000
Book value at the beginning of year 2 = $450,000 - $225,000 = $225,000
Depreciation expense in year 2 = 2/4 x $225,000 = $112,500