Which of the Following Is Correct Relating to Kiting

question 17

Multiple Choice

Which of the following is correct relating to kiting?

• A)It is ordinarily used to understate cash.
• B)It is more difficult to accomplish in an electronic environment as contrasted to a non-electronic environment.
• C)It is a lapping approach performed using receivable accounts.
• D)It is seldom,if ever,used.

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or recorded as income by the end of the accounting period.

Journal Entry

A record in accounting that logs the debit and credit sides of a financial transaction.

Deposits In Transit

Funds that have been deposited in a bank account but not yet recorded by the bank, leading to a difference between the company's records and the bank statement.

Outstanding Checks

Checks that have been written and recorded in the issuing company's books but have not yet been cleared by the bank.