Factors That Would Lead an Employee to Commit a Lapping

question 19

Multiple Choice

Factors that would lead an employee to commit a lapping scheme include:

• A)a proper separation of duties.
• B)not allowing the bookkeeper to access to cash.
• C)appropriately monitoring the activities of employees who handle cash.
• D)allowing employees to not take time off for earned vacations.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Income Distribution

Income distribution involves the sharing of a company's profits among its shareholders or the allocation of income across various economic groups in a society.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Unlimited Liability

A legal structure in which the owners of a business are personally responsible for all the debts and obligations of the business, without any limit.