Kiting Would Least Likely Be Detected By

question 59

Multiple Choice

Kiting would least likely be detected by:

• A)Analyzing details of large cash deposits around year-end.
• B)Comparing customer remittance advices with recorded disbursements in the cash disbursements journal.
• C)Preparing a four-column bank reconciliation for all major cash accounts.
• D)Preparing a schedule of interbank transfers by using the client's records and bank statements around year-end.

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Definitions:

Natural Gas Pipeline

A system of pipes that transports natural gas from its source to the consumers or to a processing plant.

Diminishing Returns to Scale

A situation where, as more inputs are used, the incremental increase in output decreases.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Constant Returns to Scale

A situation in production where increasing the inputs exactly proportionally results in an equivalent increase in output.