Lapping Is Best Described as the Process of

question 13

Multiple Choice

Lapping is best described as the process of

• 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)stealing small amounts of cash,many times over a period of time.
• D)increasing expenses to conceal that an asset was stolen.

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Definitions:

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Deferral of Taxes

The postponement of taxes to a future period, commonly used in retirement savings plans and investment accounts.

Traditional Retirement Plan

A retirement savings plan that offers tax advantages to the saver, typically involving pre-tax contributions that grow tax-deferred until withdrawals begin at retirement.

Roth Retirement Plan

A type of retirement savings account allowing the saver to pay taxes on the money going into the account, with subsequent withdrawals being tax-free.