Which of the Following Best Describes Kiting

question 78

Multiple Choice

Which of the following best describes kiting?

• A)Theft of cash for personal use and cover-up using the bank statement.
• B)A fraudulent cash scheme to overstate cash assets at year end by recording deposits in transit.
• C)Manipulation of financial reporting by increasing both cash and debt by the same amount.
• D)Colluding to steal cash by wiring money to a fictional vendor and concealing it with customer payments.

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Definitions:

Black Market

An illegal trade of goods or services that are not sanctioned by the authority, often to avoid taxes or because the goods are prohibited.

Gray Market

involves the trade of legal goods through unauthorized, unofficial, or unintended channels, usually not illegal but discouraged by manufacturers.

Resource Market

The marketplace where resources or inputs (like labor, capital, and raw materials) used to produce goods and services are bought and sold.

Excess Burden

Refers to the cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.