In a ________ Scheme,customer Receipts Are Stolen and Then Subsequent

question 34

Multiple Choice

In a ________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

• A) kiting
• B) laundering
• C) bogus expense
• D) lapping

---

Definitions:

Opening Inventory

The value of the goods available for sale at the beginning of an accounting period.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determined by the currency that mainly influences sales prices for goods and services or the country whose competitive forces and regulations most affect the entity's performance.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company.

Economic Exposure

The risk that a company's cash flow, earnings, or future cash flows will be affected by changes in exchange rates.