Which of the Following Is Not a Characteristic of Fraud

question 7

Multiple Choice

Which of the following is not a characteristic of fraud?

• A)Intent to deceive.
• B)Misrepresentation or intentional omission of significant information.
• C)Taking unfair or dishonest advantage of others for personal gain.
• D)Negligence on the part of executive management.

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Definitions:

Additional Paid-in Capital-Common Stock

This represents the amount investors have paid above the nominal or par value of common stock, reflecting additional equity contributed to the company.

Inventory

The goods and materials that a business holds for the ultimate goal of resale, production, or utilization.

Incremental Interest Rate

The interest rate used in lease agreements or loans that represents the additional interest charged over a base rate.