Which of the Following Is Not an Example of the Fraud

question 17

Multiple Choice

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

• A) revenge against the company
• B) intent to repay "borrowed" funds in the future
• C) sense of entitlement as compensation for receiving a lower than average raise
• D) belief that the company won't suffer because an insurance company will reimburse losses

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Definitions:

Consolidation Adjustments

Adjustments made to combine the financial statements of parent and subsidiary companies into a single set of financial statements.

Non-Controlling Interest

A financial concept referring to a minority ownership in a company, holding less than 50% of the stock.

Inventory Transfers

Inventory transfers involve the movement of inventory items from one location to another, which may affect inventory levels, valuations, and accounting records.

Inter-Entity Transactions

Transactions that occur between two entities within the same parent company structure, often involving transfers of assets, services, or funds.