NCJ Number
167441
Journal
Fire and Arson Investigator Volume: 47 Issue: 2 Dated: (December 1996) Pages: 24-29
Date Published
1996
Length
6 pages
Annotation
This article explains the benefits of financial and accounting knowledge for arson-for-profit investigators and provides guidelines for reviewing financial statements and recognizing signs that a business was experiencing financial difficulty or was systematically planning in advance to be out of business prior to the fire.
Abstract
Financial motives for arson for profit include avoiding insolvency, preventing further business losses, insurance fraud, disposal of inventory, real estate fraud, liquidating a business, and relocating or renovating a business. The balance sheet and the income statement are the most important financial statements. Crucial concepts include current assets, fixed assets, depreciation, current liabilities, long-term liabilities, current position analysis, accounts receivable analysis, merchandise inventory analysis, the ratio of plant assets to long-term liabilities, and the ratio of stockholders equity to liabilities. Case examples and author photograph