Which of the Following Is Not Considered One of the Three

question 6

Multiple Choice

Which of the following is not considered one of the three factors increasing the probability of fraud?

• A)Motive.
• B)Lack of training.
• C)Opportunity.
• D)Rationalization.

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Definitions:

Total Debt

The sum of all financial obligations or liabilities held by a business or individual, including short-term and long-term debt.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the fraction of revenue that constitutes profit.

Cash Coverage Ratio

A financial metric that measures a company's ability to pay off its debt obligations with its cash flow, by comparing its operating cash flow to its total debts.

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.