Which of the Following Explains Is the Underlying Proposition of Fraud

question 11

Multiple Choice

Which of the following explains is the underlying proposition of fraud diamond?

• A) Integrity, reflected in one's decisions, influences deviant behavior.
• B) If incentive is present in an act, the suspect's capacity does not matter.
• C) A suspect's capacity, not incentive, should be considered by the forensic accountant.
• D) In addition to pressure, opportunity, and rationalization, offenders also need the capability to commit the act.

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Definitions:

Internally Developed Goodwill

The unrecognized benefit or extra value generated from a business's internal operations and initiatives, which is not formally recorded on the balance sheet.

Purchased Goodwill

The value paid above the fair value of the net assets of a company during an acquisition, attributed to non-tangible assets like reputation or customer loyalty.

In-Process R&D

Refers to the costs associated with research and development activities that are ongoing at the time of an acquisition.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits to its owner, such as trademarks, patents, copyrights, and goodwill.