Which Characteristic of the Fraud Triangle Often Stems from the Belief

question 52

Multiple Choice

Which characteristic of the fraud triangle often stems from the belief that "the rules do not apply to me" within an organization?

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

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Definitions:

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Compound Interest

A way of calculating interest whereby the charge is based on the initial principal amount as well as on the interest that has accumulated in prior periods of a loan or deposit.

Cash Inflow

Money received by a business, typically from operational, investing, and financing activities.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.