Which of the Following Is True About Scienter and Intent

question 13

Multiple Choice

Which of the following is true about scienter and intent to deceive?

• A) Scienter can occur when the party making the fraudulent assertion believed it was false; intent to deceive occurs when the person making the false statement claims to have personal knowledge of the statement's accuracy.
• B) Either scienter or intent to deceive can occur when the party making the false statement claims to have personal knowledge of its accuracy.
• C) Intent to deceive can occur when the party making the fraudulent assertion believed it was false; scienter occurs when the person making the false statement claims to have personal knowledge of the statement's accuracy.
• D) Scienter and intent to deceive do not involve a party's personal knowledge of the statement's accuracy.
• E) In both scienter and intent to deceive, the party making the statement does not want the contract to be fulfilled on the basis of a falsehood.

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Definitions:

Materials

The raw items and components used in the production of goods.

Process Costing

An accounting methodology used for homogeneous products, attributing costs to units of product through an average or a similar method.

Conversion Costs

The combined costs of direct labor and manufacturing overhead expenses, representing the costs necessary to convert raw materials into finished goods.

Equivalent Unit

A concept used in cost accounting to convert partially completed goods into a number of complete units of output, allowing for a consistent measure of output.