Which of the following terms refers to the act of billing for goods not delivered or services not rendered?

The term that describes the act of billing for goods not delivered or services not rendered is "fictitious sales." This fraudulent activity occurs when a company generates invoices for products or services that have never actually been provided to the customer. By doing so, the company can inflate its revenue figures, creating a misleadingly positive picture of financial health.

Fictitious sales can significantly distort financial statements, which is why they are a common scheme associated with financial fraud. Businesses may conduct these schemes to meet sales targets, secure loans, or enhance their market valuations, all of which can lead to severe legal and financial consequences if uncovered.

While other terms listed relate to different types of fraud, they do not specifically involve the practice of billing for non-existent goods or services. Check fraud pertains to unauthorized use of checks to obtain funds, financial statement fraud involves misreporting financial information, and inventory theft deals with the physical stealing of goods.