The most efficient way to conceal asset misappropriation is to
A)understate a stolen inventory item an asset account.
B)charge a stolen inventory item to an expense account.
C)not talk about the theft with anyone in the company.
D)record fictitious payments to vendors.

Question

Quizplus · Accepted Answer

Charging a stolen inventory item to an expense account would make it appear as though the item was used in the normal course of business and not stolen, making it the most efficient way to conceal asset misappropriation. Understating the stolen item in an asset account may still raise suspicion during a physical inventory count, while recording fictitious payments to vendors would require creating a paper trail that could potentially be uncovered through audits or investigations. Not talking about the theft to anyone in the company would not conceal the misappropriation as it would still be reflected in accounting records.

The Most Efficient Way to Conceal Asset Misappropriation Is to