New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Which of the following term describes the concealment

    of shortage by delaying the recording of cash receipts?
    A Embezzlement Correct Answer Incorrect Answer
    B Misappropriation Correct Answer Incorrect Answer
    C Lapping Correct Answer Incorrect Answer
    D Error of commission Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Lapping is a type of fraud which occurs  when an employee alters accounts receivable records in order to hide the theft of cash . This is done by diverting a payment from one customer, and then hiding the theft by diverting cash from another customer to offset the receivable from the first customer.

    Practice Next