The Transfer of Money from One Bank Account to Another

question 133

True/False

The transfer of money from one bank account to another and improperly recording the transfer so that the amount is recorded as an asset in both banks is referred to as kiting.

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Definitions:

Account Balance

The total amount of money in a financial account, calculated by subtracting total debits from total credits.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense account.

Acquisition Method

An accounting procedure for recording the purchase of one company by another, focusing on fair value assessments of acquired assets and liabilities.