Week Two Discussion Questions Essay Example | Topics and Well Written Essays - 1000 words

Week Two Discussion Questions - Essay showcaseA federation with a higher debt to equity ratio is generally preferred by lenders because it indicates that the follow has low degree of debt and thus, it may be able to return the borrowed funds as compared to a familiarity with higher level of debts. However, other factors are considered as well before the final decision is do regarding whether to lend money or not.A dividend is paid to shareholders as a reward of their investments in the companys assets. However, if the company is not doing well financially, has earned losses, or there is a big groovy expenditure planned in the next year there may be a item of not paying dividends. Shareholders would certainly prefer to receive dividends as it increases their wealth.3. Discuss- I think I take for mentioned previously that most financial statement frauds are perpetrated by what we refer to as the C-Suite, i.e., the CFO, CEO, CIO, COO, and other old executives who work in collus ion.I completely agree to the articles contents. CEOs know their companies inside forbidden and are in best positions to commit a fraud. In recent times, we saw that the CEO of Satyam, an Indian IT outsourcing company, was arrested for conducting similar frauds. He inflated his balance sheets by way of recording fictitious receivables. The receivables were recorded by selling to fictitious companies. According to one of his interviews, he was under pressure to show better executing and in order to conceal the modest performance of the company he had to do virtuallything out of the box. Unfortunately, the only thing he was successful to do was against the law.Yes, I agree. Travel related frauds are some of the most common fraud cases. Although, these are not very huge in magnitude (in impairment of amounts involved) yet the volume and frequency of occurrence is quite high. Most of the times, it is very difficult to detect these as