Kiting Is Possible When the Same Individual Can Issue and Record

question 42

True/False

Kiting is possible when the same individual can issue and record checks.

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Definitions:

Aging Analysis

An accounting process that categorizes accounts receivable based on the length of time an invoice has been outstanding.

Bad Debts

Accounts receivable that a company determines it will not be able to collect.

Unadjusted Trial Balance

A financial report showing all accounts and their balances before adjustments, serving as a check on the correctness of the sums of debit and credit balances.

Aging of Accounts Receivable

A document or method that organizes a business's accounts receivable based on the duration an invoice has remained unpaid.