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 type of fraud arises from peripheral or incidental transactions, rather than from the main operations of a business?

Collusion among employees

Fraudulent financial reporting

Irregularities in non-operating activities

Misappropriation of assets

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Verified step by step guidance

Understand the types of fraud listed in the problem: Collusion among employees, Fraudulent financial reporting, Irregularities in non-operating activities, and Misappropriation of assets.

Recognize that the question is asking about fraud arising from peripheral or incidental transactions, which are not part of the main operations of a business.

Define each term: 'Collusion among employees' refers to employees working together to commit fraud, often related to operational activities. 'Fraudulent financial reporting' involves intentional misrepresentation of financial statements, typically tied to the core operations of the business. 'Misappropriation of assets' refers to theft or misuse of company resources, which can occur in both operational and non-operational contexts.

Focus on 'Irregularities in non-operating activities,' which specifically refers to fraud occurring in transactions outside the main operations of the business, such as investments, financing activities, or other peripheral transactions.

Conclude that the correct answer is 'Irregularities in non-operating activities,' as it directly addresses fraud arising from incidental or peripheral transactions rather than the main operations of the business.