Establishing Fake Companies, Then Having the Company Pay for Goods

question 107

Short Answer

Establishing fake companies, then having the company pay for goods or services that will never be delivered, and then intercepting and cashing the cheques would be an example of a(n) __________.

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Definitions:

Collections

Refers to the process or activity of gathering or receiving payments from customers, typically relating to accounts receivable.

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.

Budgeted Required Production

The quantity of product that a company plans to manufacture in a specific period, determined based on sales forecasts and inventory targets.

Direct Labor Wage Rate

The rate of compensation paid to employees who directly work on the production of goods or services.