A Common Scheme to Conceal the Misappropriation of Cash Receipts

question 54

Multiple Choice

A common scheme to conceal the misappropriation of cash receipts ________.

• A)is known as lapping
• B)is known as kiting
• C)is usually committed by senior management and members of the board of directors
• D)should be handled by the internal audit function, not the external auditors

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Definitions:

Assets Section

The part of a balance sheet that lists the company's resources, such as cash, inventory, and property.

Expense Section

A part of the financial statement that lists and details the costs incurred by a company during a specific period.

Finished Goods

Finished Goods are products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Merchandise Inventory

Goods and products that a business holds in stock with the intent of selling them to customers.