Accountant 1: I just found out we have a major problem with inventory fraud.Accountant 2: Really? How do you know?Accountant 1: I compared the actual inventory to what is recorded in our general ledger. We’re missing a lot of inventory.Accountant 2: Oh, no. Do you think some of the employees are 1 ____________ ?Accountant 1: That 2 _______________________________________________ the problem. I think some of the suppliers have been short-shipping.Accountant 2: OK. What do you think we should do about it?Accountant 1: 3 ________________________________ someone match every receiving report with the purchase orders?Accountant 2: That’s a good idea. And we can also have the receiving 4 __________________________________ of any shipments that are short of product.Accountant 1: That 5 _______________________ to me. I’ll write a 6 ___________________________________ about the purchase orders.Accountant 2: All right. I’ll 7 _____________________________________________with the receiving clerks.
A The insurance policy must be _________________________________ .B _________________________________ will cover those expenses.
A _________________________________ is more flexible than cash basis.B Credit purchases are recorded in _________________________________ .
A ________________________________are expenses that are paid in advance.B ________________________________ records only the exchange of cash.