Misappropriation of Assets Can Involve Various Schemes: Expense Reimbursement Fraud,lapping,and

question 152

Essay

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

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Definitions:

Insurance Expense

Costs incurred by a business or individual for purchasing insurance coverage, considered an operating expense in accounting.

Prepaid Insurance

An expense that has been paid in advance for insurance coverage which will be recognized over the period to which the premium relates.

Adjusted Balance

A method used to calculate the balance of an account after adjusting for any debits and credits that have occurred during the period.

Prepaid Insurance

Prepaid Insurance is the portion of an insurance premium that has been paid in advance and is recognized as an asset until the coverage period lapses.