A firm is involved in "cheque kiting" if it:

Question

Quizplus · Accepted Answer

Cheque kiting involves writing cheques from one account to another, taking advantage of the float (the time between when the cheque is deposited and when it clears). Writing cheques on its own account for creating float is an example of cheque kiting. Option A is an example of fraud, but not cheque kiting. Option B is an example of late payments, but not cheque kiting. Option C is vague and does not provide enough information to determine if it is cheque kiting.

A Firm Is Involved in "Cheque Kiting" If It