Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

All of the following transactions might indicate a money laundering red flag except:

A customer frequently deposits large amounts of cash just below the reporting threshold.

A company regularly pays its utility bills through its operating account.

An account shows sudden, unexplained increases in wire transfers.

A business makes payments to unrelated third parties in high-risk countries.

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Verified step by step guidance

Understand the concept of money laundering red flags: Money laundering involves disguising the origins of illegally obtained money, and certain financial transactions can indicate suspicious activity.

Review each transaction option provided in the problem and assess whether it aligns with common money laundering red flags. For example, frequent deposits just below the reporting threshold may indicate an attempt to avoid detection.

Analyze the transaction where a company regularly pays its utility bills through its operating account. This is a normal business activity and does not typically indicate suspicious behavior, making it the exception.

Evaluate the other transactions, such as sudden increases in wire transfers or payments to unrelated third parties in high-risk countries, as these could be indicative of money laundering activities.

Conclude that the transaction involving regular utility bill payments is the least likely to be a money laundering red flag, as it represents standard business operations.