Sam Jones,controller of Mitnikco,spends Three Days Researching the Accounting Standards

Multiple Choice

Sam Jones,controller of Mitnikco,spends three days researching the accounting standards to find loopholes in the "rules" and to make a case for recognizing revenue earlier,rather than in later years.In the end,Sam and the other members of management determine that they will reduce the company's deferred revenue accounts and begin accounting for all revenues as agreements are signed.Based solely on the preceding information,which element of fraud is represented by the actions of Mitnikco management?

A) Pressures.
B) Opportunity.
C) Rationalization.
D) Skepticism.