Which of the Following Best Describes Lapping

question 19

Multiple Choice

Which of the following best describes lapping?

• A) Applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.
• B) Inflating bank balances by transferring money among different bank accounts.
• C) Increasing expenses to conceal that an asset was stolen.
• D) Stealing small amounts of cash, many times over a period of time.

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Definitions:

Present Value

The present value of anticipated future cash flows or sums of money, calculated with a given rate of earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period, providing insight into its financial health and liquidity.

Internal Rate Of Return

The discount rate at which the net present value of all the cash flows from an investment equal zero.

Present Values

The current worth of a future sum of money or stream of cash flow given a specified rate of return.