What are some of the distinguishing characteristics of fraud perpetrators?
What will be an ideal response?
Answer: Some distinguishing characteristics of fraud perpetrators are: they tend to spend their illegal income to support their lifestyle; once they begin it becomes harder to stop and they become bolder as each incident happens; once they start to rely on the ill-gotten gains, they become more greedy and sometimes careless and overconfident. In the case of computer criminals, they are often young and have substantial computer knowledge. About two-thirds are men and likely to be an employee of the firm from which they steal. Many are unhappy or disgruntled with their employer because they feel unappreciated and underpaid. Most have no previous criminal record.
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Jupiter Service Company decides to increase the amount of the petty cash fund from $500 to $600. A journal entry must be made to debit the Cash account and credit the Petty Cash account for $100
Indicate whether the statement is true or false
You would like to borrow money three years from now to build a new building. In preparation for applying for that loan, you are in the process of developing target ratios for your firm. Which set of ratios represents the best target mix considering that you want to obtain outside financing in the relatively near future?
A. Times interest earned = 1.7; debt-equity ratio = 1.6 B. Times interest earned = 1.5; debt-equity ratio = 1.2 C. Cash coverage ratio = .8, debt-equity ratio=0.8 D. Cash coverage ratio = 2.6, debt-equity ratio = 0.3 E. Cash coverage ratio = .5, total debt ratio = 0.2