What Separates Illegal Flipping and Legitimate Fixing and Reselling of Houses

question 31

Multiple Choice

What separates illegal flipping and legitimate fixing and reselling of houses?

• A) Foreclosed homes are appraised at a low price and resold at a higher price.
• B) The actual costs to renovate a home are inflated to increase the home's selling price.
• C) An individual home is bought and resold multiple times at inflated prices.
• D) Renovated homes are resold with few changes.

---

Definitions:

Outstanding Checks

Checks that have been written and recorded in the paying company's books but have not yet been cashed by the recipient.

Notes Receivable

Claims against others for money, goods, or services evidenced by written promises to pay.

Bank Reconciliation

Bank reconciliation is a process of comparing a company's financial records with its bank statements to ensure consistency and accuracy.

Outstanding Checks

Checks that have been written and recorded in the cash account but have not yet cleared the bank.