When Two or More People Get Together for the Purpose

question 82

Multiple Choice

When two or more people get together for the purpose of circumventing prescribed controls, it is called

• A) fraud prevention.
• B) collusion.
• C) a division of duties.
• D) assignment of responsibilities.

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Definitions:

Book Value

The net value of an asset or liability according to its balance sheet account balance, taking into account the cost of the asset and accumulated depreciation.

Unrealized Gain

A profit that exists on paper resulting from an investment that has increased in value but has not yet been sold.

Commercial Substance

The notion that a transaction significantly alters the cash flows that the economic entity would otherwise expect.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.