Scienter Is the Element of Fraud That Requires That the Misrepresentation

question 27

True/False

Scienter is the element of fraud that requires that the misrepresentation must have been known by the one making it to be false, although it need not have been made with an intent to deceive.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the cost of shipping as soon as the goods leave the seller's premises.

Goods In Transit

Items being transported from one location to another, which have not yet reached the recipient or destination point.

Purchaser's Inventory

Goods and materials that a business holds for the ultimate goal of resale.

LIFO Conformity Rule

A tax regulation requiring companies that use the Last In, First Out (LIFO) method for tax reporting to also use it for financial reporting.