The Key Elements of the Fraud Triangle Include All of the Following

question 71

Multiple Choice

The key elements of the fraud triangle include all of the following except

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

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Definitions:

Credit Analysis

The process of evaluating an individual's or entity's ability to repay a loan or meet financial obligations.

Default

The failure to meet the legal obligations or conditions of a loan or other financial agreement, such as not making scheduled payments.

Credit Customer

An individual or entity that purchases goods or services on credit, with an agreement to pay at a later date.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in the calculation of net present value.