Forensic Accounting

Category - Specialized Forensic Knowledge

What is kiting?
  1. Fictitious payables
  2. Fictitious receivables
  3. Fictitious share prices
  4. Inflated share prices
Explanation
Answer: B - Kiting is the creation of fictitious receivables. It is also referred to as lapping. Such a technique is used to manipulate the financial statements.
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