Which of the Following Was Not Identified as an Important

question 28

Multiple Choice

Which of the following was not identified as an important element in embezzlement in Cressey's pioneering study?

• A) Hidden financial problems
• B) Lack of a conscience
• C) Opportunity and knowledge
• D) The ability to rationalize

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Definitions:

Average Accounting Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Average Total Assets

The mean value of all assets owned by a company over a specific period, used in financial analysis to gauge the company's asset use efficiency.

Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future expected cash flows by the initial investment.

Present Value

The current worth of a future sum of money or cash flows, given a specified rate of return.