One Fraudulent Scheme Covers Up a Theft by Creating Cash

question 57

Multiple Choice

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

• A)lapping.
• B)misappropriation of assets.
• C)kiting.
• D)concealment.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project.

IRR

Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Tax Impact

The effect of taxation on an individual's or company's financial situation, including tax liabilities and planning.