What is active fraud? What four elements must be present to constitute fraud as a result of express misrepresentation?
Active fraud occurs when a party actually does something or takes steps to cause a fraud. Active fraud may occur either by express misrepresentation or by concealment of material facts. The following four elements must be present to constitute fraud as a result of express misrepresentation:
There must be a misrepresentation: A false statement of a material fact.
The misrepresentation must be made by one who knew it to be false or made it in reckless disregard for its truth or falsity.
The misrepresentation must be made with the intent to induce the innocent party to act.
The innocent party must justifiably rely on the false statement and make a contract.
You might also like to view...
Although having information about individual customers helps retailers provide better services to consumers, consumers are concerned about
A. privacy. B. loyalty. C. price promotions. D. data mining. E. descriptive information.
Which of the following would most likely be classified as Marketable Securities in the Current Assets section of the balance sheet?
a. United States Treasury Notes that the firm expects to hold for less than one year b. investments in securities for the purpose of exerting significant influence over the investee's dividend payout police c. investments in securities for the purpose of exerting significant influence over the investee's licensing of a patent d. investments in securities for the purpose of exerting control over the investee's day-to-day operations e. none of the above
Productivity is calculated as ______.
a. output divided by input b. input divided by output c. output times input d. input plus output
The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records
Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year $104,560 Total direct labor costs estimated at the beginning of the year $186,000 Total direct labor hours estimated at the beginning of the year 3,300 direct labor hours Actual manufacturing overhead costs for the year $99,700 Actual direct labor costs for the year $150,000 Actual direct labor hours for the year 2,100 direct labor hours The company's manufacturing overhead allocation is based on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A) $104,560 B) $66,528 C) $164,309 D) $186,000