Kiting Is Possible When

question 3

Multiple Choice

Kiting is possible when:

• A) one person handles cash receipts and another maintains the accounts receivable ledger.
• B) one person handles cash receipts and maintains the accounts receivable ledger.
• C) one person issues cheques and another records them.
• D) one person issues cheques and records them.

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Definitions:

Antecedent Claim

A claim or right that precedes another in time or is earlier within a legal context or agreement.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.

Real Defenses

Defenses available in a legal action that can be used against any claimant, not just the original party to a contract.

Personal Defenses

Legal arguments an individual can use to avoid enforcement of a contract or agreement, often based on personal circumstances or relationships.