Criminal Fraud Is the Same as Contract Fraud

question 57

True/False

Criminal fraud is the same as contract fraud.

---

Definitions:

Forward Contract

An agreement not based on standard terms between two entities to purchase or sell a given asset at a future date for a price that is determined now.

Foreign Currency Risk

The possibility of losing value due to changes in the exchange rate between two currencies.

Fair-value Hedge

A strategy used in accounting to mitigate the risk of changes in the fair value of an asset, liability, or firm commitment through derivative contracts.

Cash-flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with an asset or liability or a forecasted transaction.