The Most Important Element of the Fraud Triangle Is Rationalization

question 12

True/False

The most important element of the fraud triangle is rationalization.

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Definitions:

Year

A period of time equal to 365 days, or 366 in leap years, used for calculating time in calendar terms.

Recession

An interim period of economic fallback, where there’s a noticeable dip in commercial and industrial outputs, customarily marked by a decrease in GDP in two successive quarters.

Depression

a severe and prolonged downturn in economic activity, characterized by significant fall in spending and high unemployment.

Unemployment Rate

The level of unemployment within the labor force characterized by active job search efforts.