The Fraud Triangle Contains Three Elements That Must Exist for Accounting

question 108

Multiple Choice

The fraud triangle contains three elements that must exist for accounting fraud to occur.The elements are:

• A)fear,greed,and satisfaction.
• B)greed,larceny,and access.
• C)motive,opportunity,and means.
• D)incentive,opportunity,and rationalization.

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, which decreases as production increases.

Long Run

The long run is a period in which all inputs and production technologies can be varied, with no fixed factors of production.

Long-Run

Pertains to a period in which all factors of production and costs are variable, allowing companies to adjust all inputs.

AVC

Average Variable Cost, the total variable cost divided by the number of units produced, reflecting costs that change with output.