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 of the following statements is true regarding negligent misrepresentation in the context of financial accounting?

Negligent misrepresentation only applies to criminal cases, not civil cases.

Negligent misrepresentation occurs when false information is provided without intent to deceive, but due to a lack of reasonable care.

Negligent misrepresentation requires proof of intentional fraud.

Negligent misrepresentation is not considered a form of financial statement fraud.

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Verified step by step guidance

Step 1: Understand the concept of negligent misrepresentation. Negligent misrepresentation occurs when a party provides false information without the intent to deceive but fails to exercise reasonable care or competence in obtaining or communicating the information.

Step 2: Analyze the first statement: 'Negligent misrepresentation only applies to criminal cases, not civil cases.' This is incorrect because negligent misrepresentation is typically a civil matter, not a criminal one.

Step 3: Analyze the second statement: 'Negligent misrepresentation occurs when false information is provided without intent to deceive, but due to a lack of reasonable care.' This is correct because it aligns with the definition of negligent misrepresentation.

Step 4: Analyze the third statement: 'Negligent misrepresentation requires proof of intentional fraud.' This is incorrect because negligent misrepresentation does not involve intent to deceive; it is based on carelessness or lack of reasonable care.

Step 5: Analyze the fourth statement: 'Negligent misrepresentation is not considered a form of financial statement fraud.' This is incorrect because negligent misrepresentation can be considered a form of financial statement fraud if it leads to the dissemination of false financial information due to negligence.