A False Statement About a Fact Material to an Agreement

question 16

Multiple Choice

A false statement about a fact material to an agreement that the person making the statement believed to be true is considered a(n) ________.

• A)commercial disparagement
• B)innocent misrepresentation
• C)fraudulent misrepresentation
• D)scienter-based misrepresentation
• E)criminal misrepresentation

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid for or recorded through the issuance of cash or other payments.

Incurred

Refers to costs or expenses that have been consumed or experienced in the process of generating revenues.

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for the period.