A Clearinghouse Scam

question 45

Multiple Choice

A clearinghouse scam:

• A)involves a victim receiving a letter that claims he or she has inherited a significant amount of money.
• B)involves a victim receiving a mail from a known party who claims to have access to large sums of money or assets.
• C)involves a victim receiving a letter that falsely claims the writer represents a foreign bank.
• D)involves a victim receiving an email containing the Social Security number and/or credit information.

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Definitions:

Unearned Fees

Income received by a business for services yet to be performed or delivered, recorded as a liability on the balance sheet until the services are completed.

Earned Fees

Revenue generated from providing services or performing work.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the employer.