Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.
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A. B. C. D.B
The correct answer is B. Inventory and Equipment.
The Association of Certified Fraud Examiners (ACFE) conducted a study called the "Report to the Nations: 2020 Global Study on Occupational Fraud and Abuse." This study analyzed 2,504 cases of occupational fraud that occurred in 125 countries.
According to the study, physical assets, specifically inventory and equipment, are the most commonly misappropriated noncash assets. Misappropriation of assets refers to the theft or misuse of an organization's assets by an employee or other insider.
Inventory misappropriation involves stealing or misusing a company's products, materials, or supplies. This can include taking inventory for personal use, selling it for personal gain, or giving it away to friends or family members.
Equipment misappropriation involves stealing or misusing a company's machinery, tools, vehicles, or other equipment. This can include using equipment for personal use, selling it for personal gain, or giving it away to friends or family members.
Interest and collusion are not physical assets, so they are not relevant to this question. Sales and purchase may be related to misappropriation of assets, but they are not physical assets themselves. Therefore, the correct answer is B. Inventory and Equipment.