One Fraudulent Scheme Covers Up a Theft by Creating Cash

question 57

Multiple Choice

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

• A)lapping.
• B)misappropriation of assets.
• C)kiting.
• D)concealment.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The total cost accrued in making products completed during an accounting period, including labor, material, and overhead costs.

Statement of Cost

A financial report that details the costs associated with producing goods, often used in manufacturing to assess production expenses.

Raw Material Inventory

Items and inventory that are used in the manufacturing process to create products but have not yet been converted into finished goods.