How does one commit accounts receivable fraud?

A) submit a fake invoice and pocket the money

B) bill customers for the amount they purchased, but record lower purchases in the ledger and pocket the money

C) create a ghost employee to defraud a payroll

D) order unneeded inventory, which gets subsequently stolen and used or sold

Question

Computers and Technology

Preston Cannon

20 August, 00:46

How does one commit accounts receivable fraud?

A) submit a fake invoice and pocket the money

B) bill customers for the amount they purchased, but record lower purchases in the ledger and pocket the money

C) create a ghost employee to defraud a payroll

D) order unneeded inventory, which gets subsequently stolen and used or sold

+2

Answers (1)

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Damarion Cline · Answer 1

The answer is B) bill customers for the amount they purchased, but record lower purchases in the ledger and pocket the money. A fraud is one of two types of mistake in the recording process which done with a deliberate intention. The account receivable department responsible for recording sales transaction and billing the customers. Thus, the account receivable fraud can be committed in this process.