Which of the following ratios can be used to determine the efficiency with which a company uses its assets?

• A.Asset turnover ratio
• B.Debt-to-equity ratio
• C.Quick ratio
• D.Receivable turnover ratio

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Financial statement fraud is committed by:

• A.All of the above
• B.Senior Management
• C.Mid and lower level employees
• D.Organized criminals

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Which of the following is one of the categories on the statement of cash flows?

• A.Cash flows from supply chain activities
• B.Cash flows from revenue activities
• C.Cash flows from strategic activities
• D.Cash flows from investing activities

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Blue sold $1,000 worth of merchandise and collected the payment from her customer in currency, but she only recorded the sale of $800 worth of merchandise. Blue turned $800 over to her employer and kept the remaining
$200. Blue's scheme is BEST classified as:

• A.An understated sales (skimming) scheme
• B.A cash larceny scheme
• C.A false billing scheme
• D.An unrecorded sales (skimming) scheme

Correct Answer: A

Explanation/Reference: https://yellowbook-cpe.com/misappropriation-of-cash-larceny-skimming.html

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Which of the following is a red flag that might indicate the existence of a need recognition scheme?

• A.The purchasing entity's materials are not being ordered at the optimal reorder point.
• B.The purchasing entity does not have high requirements for stock and inventory levels.
• C.The purchasing entity has an unusually large list of backup suppliers available.
• D.The purchasing entity identifies a need that can be met by various suppliers.

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