In a fictitious refund scheme, which statement is true?

• A. Inventory is returned to the store
• B. The amount of cash in the register balances with the register log
• C. The victim company's inventory is understated
• D. All of the above

Answer: (B)

The key idea here is cash handling and how a register’s records should line up with the actual cash on hand. In a fictitious refund scheme, the most reliable indicator among the choices is whether the cash in the drawer matches what the register log shows. If those figures balance, it means the cash tally and the recorded refunds/sales agree, which is the strongest observable sign in this scenario.

The other statements rely on specifics of how the fraud is carried out. Whether inventory is actually returned to the store, or whether the victim company’s inventory is understated, can vary depending on the fraud’s mechanics and timing. Those outcomes aren’t guaranteed or universal indicators in this context, so they’re not the best single truth to rely on.