Question

Which is an example of fraudulent bookkeeping on the income side?

Question 8 options:

A customer is billed for a service or product, but it gets recorded in the ledger at a lower amount.

A fake invoice is submitted and paid.

A ghost employee is created to defraud payroll.

Illegal money is rendered legal in a three-step process.

Answer 1

A customer is billed for a service or product, but it gets recorded in the ledger at a lower amount is an example of fraudulent bookkeeping on the income side. This fraud would likely happen in the account receivable department of a company which generates sales for its function. The sale is the primary source of company's operational income.