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

Buying a home security system is an example of protecting your home against ________.

rationalization

opportunity

fraud

incentive

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Verified step by step guidance

Understand the context of the question: It is asking about the motivation behind buying a home security system and how it relates to fraud prevention.

Review the fraud triangle, which consists of three elements: opportunity, rationalization, and incentive. These are the conditions that typically lead to fraudulent behavior.

Analyze the term 'opportunity' in the fraud triangle. Opportunity refers to the ability to commit fraud due to weak controls or lack of security measures. A home security system reduces the opportunity for fraud or theft by increasing protection.

Consider the term 'rationalization.' This refers to the justification a person might use to commit fraud. Buying a home security system does not directly address rationalization, as it is more about preventing the act itself rather than the justification.

Evaluate the term 'incentive.' Incentive refers to the pressure or motivation to commit fraud, such as financial need. A home security system does not directly address incentive but rather focuses on reducing the opportunity for fraudulent or criminal acts.