A Type of Fraud,in Which Money Received from Later Investors

question 45

Short Answer

A type of fraud,in which money received from later investors is used to provide returns to earlier investors,thus giving an appearance of a profitable investment is called a ______ scheme.

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Definitions:

Post-closing Trial Balance

A list of all company accounts that remain after year-end closing entries have been made, used to verify the balance of debits and credits.

Financial Statements

Structured reports of an entity's financial activities and condition, including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period and are not closed out, such as assets, liabilities, and equity accounts.

Balance Sheet

A document depicting a corporation’s financial standing at a particular instant, outlining its assets, debts, and owner's equity.