The process which postpones entries for the collection of receivables to conceal an existing cash shortage is referred to as:
A) cooking the books.
B) lapping.
C) kiting.
D) computer fraud.

Question

Quizplus · Accepted Answer

Lapping is the process of postponing entries for the collection of receivables in order to conceal an existing cash shortage. Cooking the books refers to fraudulent manipulation of financial statements. Kiting is a type of fraud involving the deliberate writing of checks on accounts with insufficient funds in both accounts, creating the appearance of a balance in both accounts. Computer fraud refers to any fraudulent activity involving the use of computers or computer systems.

The Process Which Postpones Entries for the Collection of Receivables