The Fraud Triangle Asserts That the Three Factors That Must

question 219

True/False

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

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Definitions:

Cash Operating Inflows

The money received from the primary business activities of a company, such as sales revenue, minus operating expenses.

Straight-Line Basis

A method of calculating depreciation or amortization by equally spreading the cost of an asset over its useful life.

Cash Flow from Operations

The cash generated by a company’s normal business operations.

Initial Investment

The initial amount of money spent to start a project or investment, often used as a baseline for calculating future returns.