This Component of the Fraud Triangle Explains the Incentive or Motivation

question 10

Multiple Choice

This component of the fraud triangle explains the incentive or motivation for someone to commit fraud.

• A)Pressure
• B)Rationalization
• C)Concealment
• D)Opportunity

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Definitions:

Periodic Net Income

The profit or loss reported by a company at the end of a specific accounting period, reflecting all revenues and expenses.

Trading Securities

Financial assets that a company buys and sells with the intention of making a profit in the short term.

Debt Securities

Notes and bond investments that provide interest revenue over a fixed maturity.

Equity Securities

The common and preferred stock of a firm.