Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Which term describes an action that can damage or compromise an asset?

Opportunity

Threat

Incentive

Rationalization

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Verified step by step guidance

Understand the context of the question: In Financial Accounting, terms like 'Threat,' 'Opportunity,' 'Incentive,' and 'Rationalization' are often used in risk assessment and fraud analysis.

Define the term 'Threat': A threat refers to any action, event, or condition that has the potential to damage or compromise an asset, whether it is physical, financial, or informational.

Differentiate the other terms: 'Opportunity' refers to a favorable condition for achieving a goal, 'Incentive' is a motivating factor, and 'Rationalization' is the justification of unethical behavior.

Relate the term 'Threat' to asset protection: In accounting, threats are identified during risk assessments to ensure proper controls are in place to safeguard assets.

Conclude that the correct term describing an action that can damage or compromise an asset is 'Threat,' as it directly aligns with the definition provided.