Question

21. As a , you work within an organization, prepare reports, and analyze financial information such as budgets and cost management for internal use only.
a. public accountant
b. government accountant

c. management accountant

d. forensic accountant

22. Cressey identifies three types of "offenders". These include all of the following EXCEPT:

a. Absconders
b. Independent businessmen
c. Long-term violators

d. Stakeholders

23. In a white collar crime situation, ___________ is created by strong internal controls, good management oversight, and/or through use of one's position and authority.

a. pressure
b. oversight
c. opportunity
d. rationalization
e. none of the above

24. Rationalization of a white collar crime by the perpetuator includes which of these:

a. They owe me

b. Borrowing
c. Nobody will get hurt d. I deserve more
e. All of the above

25. Business owners should have video cameras in the workplace even though the video cameras may not be functional because it is the mere perception that the security is in place that will work as a deterrent.

a. True b. False

26. A message from Chairman Phil Knight to all Nike employees: At Nike, we are on the offense, always. We play hard, we play to win, but we play by the rules of the game. The “rules of the game” are posted on the

company’s Web site in a document entitled “Inside the Lines,” which is actually Nike's___________.

A. List of Achievements

B. Code of Ethics

C. Corporate lessons

D .Rationalization of corporate behavior

27. Unity of command is best displayed in and defined as:

A. a marketing plan; the single employee responsible for the job

B, an employee handbook; the boss who reports to the President of the company

C.an organizational chart; one employee reporting to only one boss

D. a divisional organizational structure; one boss who report to two Vice Presidents

28. Depository institutions include all of the following except:

a. Credit unions

b. Commercial banks
c. Investment Banks
d. Savings & Loan Associations
e. all of the above are depository institutions

29. ________ is the practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value.

a. Skimming approach to pricing

b. Cost-plus pricing
c. Prestige pricing
d. none of these

30. ________ is where new securities are offered to any investors who are willing and able to purchase them. And, the issuing company had the securities sale authorized by ________

a. The Secondary market; the IRS
b. The NASDAQ system; the federal ethics committee
c. The Primary market; the SEC
d. The Chicago Board of Trade; the New York Stock Exchange

31. Financial capital represents funds a firm uses to acquire assets and finance its operations. All of the following represent forms of financial capital except:

a. newly issued common stock
b. new Bond issues
c. long term loans
d. reinvested earnings (Retained Earnings) e. intellectual property

Answer 1

ans 21. c - management accountant

because the management accountant refers to a function of tracking internal cost for any business process that helps an organization, firm or an individual in making decisions related to production, operation and investment in market and its main role is budgeting

ans 22. d- stakeholders

cressey is criminologist who has given theory on fraud triangle and has donec research in white collar crime. according to him there are 3 offenders

1. Independent businessmen : they use 2 excuses

• they were borrowing the money that they converted
• the fund entrusted to them where really theirs

2. long term violators : they are the peole who

• keep their families from shame, disgrace and poverty
• their employees were cheating them financially and were dishonest

3. Absconders : they are the people who take the money and run.

ans.23 e-none of the above

Pressure-

is what causes a person to commit fraud. Pressure can come from asignificant financial need or a problem. It can be almost anything such as medical bills, expensive tastes, addiction problems, divorce or on and on.

Opportunity-

is the ability to commit fraud. Opportunity is created by weak internal controls, poormanagement oversight and/or the use of one‘s position and authority e.g., serving the organization as a financedirector, controller, bookkeeper.

Rationalization-

is a crucial element for fraud. It involves a person reconciling hisbehaviour(stealing) with the commonly acceptedideals of decency and trust.Rationalization takes place in the mind and is usually overlooked, but the observant accountant will be able to detect mannerisms and word-choice that typifies a fraud suspect's behavior.

ans 24 e -all of these

fraud can definitely be rationalized in the perpetrator's mind. This is the ability to convince one that something he/she know is wrong is really. Fraudsters may often think: "I am only borrowing the money and will pay it back"; "Nobody will get hurt"; "The organization treats me unfairly, so they owe me"; "It's for a good purpose."

Somecommon rationalizations for committing fraud are as follows:

The personbelieves stealing is justified to save a loved one, The person believes they will lose everything if they

don‘t steal, The person believes there is no outside help available to them, The person labels the theft as?borrowing and fully intends to pay it back at some future date, The person, because of job dissatisfaction (low pay, environment,treatment by supervisor,etc.believes that something is owed to them, I really need this money and I‘ll put it backwhen I get mypay check. ?I‘d rather have the company on my back than the IRS. ?I just can‘t afford to loseeverything my home, car, everything.

ans.25 true

Video surveillance cameras record acts of employee theft. The cameras can act as a crime deterrent. When criminals see a surveillance camera, or employees know surveillance is in place, it discourages criminal activity.The video images will help the police in the ensuing investigation.even if they do not function,they can create fear in the minds of employee and people for commiting any fraud.

ans.26 b-code of ethics

The “rules of the game” that are posted on the company’s Web site in a document entitled “ Inside the Lines ,” which explains the standards of conduct that Nike expects its employees to follow. It’s a code of ethics, and Knight strongly suggests that all employees read it more than once. In fact, each year, all Nike employees must verify that they’ve read and understand Inside the Lines.

ans.27 c-an organizational chart; one employee reporting to only one boss

Unity of Command is one of the Henri Fayol's 14 principles of Management. This principle states that there must be only one superior to a subordinate. That is, an employee or a worker must not have many bosses or superiors. If an employee or subordinate has to work under the influence of many bosses or superiors, then it creates a confusing situation, dilemma and disorder. This also affects overall efficiency, productivity and profit of the organization.

In other words, the work of a worker or job of an employee must always be supervised by a single head.

These are the guidelines for interacting with fellow employees, consumers, shareholders, business partners, employees, and the community.They cover all the ethical basics, including bribery, conflict of interest, conflict of loyalty, questions of honesty and integrity

ans.28 c- Investment Banks

is a depository institution is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. Under federal law, however, a "depository institution" is limited to banks and savings associations ,credit unions are not included.

some of the non depository institutions are-

-mutual funds

-security firms:investment banking,equity broking

-pension funds

-Insurance companies

ANS.29 D-none of these

odd pricing is the practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value.Odd pricing is a pricing method aimed at maximizing profit by making micro-adjustments in pricing structure. It relies on the assumption that consumers are calculation-averse and will therefore only read the first digits of a price when making their purchasing decision

ans.30 c. The Primary market; the SEC

The primary market is where securities are created. It's in this market that firms sell new stocks and bonds to the public for the first time. IPO, is an example of a primary market. These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock.

SEC : It is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. Financial services firms, such as broker-dealers, advisory firms and asset managers, as well as their professional representatives, must also register with the SEC to conduct business.

ans 31. e. intellectual property

Intellectual property (IP) is a category of property that includes intangible creations of the human intellect, and primarily encompasses copyrights, patents, and trademarks. It also includes other types of rights, such as trade secrets, publicity rights, moral rights, and rights against unfair competition.Some kinds of intellectual property are considered capital assets and may be recorded on a company's balance sheet as intangible assets. Intellectual property is a fairly broad term and can take many different forms. Examples of intellectual property include patents, trademarks, copyrights, trade secrets or unique ideas