Question 1. TRUE/FALSE

a)One of the main elements of the fraud triangle isrationalization.

b)One of the most common types of fraud that impacts thefinancial statements is the misappropriation of assets.

c)Fraudulent financial reporting is committed by companymanagers.

d)A budget is a financial plan that helps coordinate businessactivities.

e)The bank reconciliation can be used to control cash.

f)There are two records of a business's cash-the cash account inthe company's general ledger and the bank statement.

g)An unrealized loss occurs when the current market value ismore than the original cost of the investment.

h)The amount of revenue to be recognized is the cash value ofthe goods or services transferred from the seller to the buyer.

i)If the credit terms are 2/10, n/30, the buyer can get a 2%discount if the invoice is paid within 30 days.

j)Sales discounts and sales returns and allowances are deductedfrom gross revenue to determine net revenue.

k)Inventory is an asset and cost of goods sold is anexpense.

l)The cost of any plant asset is the sum of all of the costsincurred to bring the asset to its intended use.

m)In the units-of production method, a fixed amount ofdepreciation is assigned to each unit of output.

n)The straight-line method must be used for computingdepreciation for income tax purposes.