If a Third Party Observes a Fraud

question 125

Multiple Choice

If a third party observes a fraud:

• A) they cannot sue
• B) they can sue
• C) they can sue, but not recover any damages
• D) they can sue on the behalf of the injured party if they split the damage award with the injured party
• E) they can sue in some states, but not others

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Definitions:

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.

Other Income

Refers to revenue generated from activities that are not part of a company's core business operations.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.