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Committing a Fraud Because the Employee Feels "I Deserve a Pay

question 92

Multiple Choice

Committing a fraud because the employee feels "I deserve a pay raise. The company owes this to me" is related to what part of the Fraud Triangle?


Definitions:

Financing Activities

involve transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Direct Method

A cash flow statement preparation approach showing actual cash inflows and outflows from operating activities without adjustments for non-cash transactions.

Operating Activities

Activities that are directly related to the primary operations of the company, including cash inflows and outflows from selling products and services.

Indirect Method

A financial reporting approach to prepare the cash flow statement where non-cash activities are adjusted to the net income to calculate cash flow from operating activities.

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