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.

Question

Quizplus · Accepted Answer

Kiting is a fraudulent scheme where cash is created by exploiting the time it takes for a bank to clear a check. In this scheme, the fraudster will deposit a check into one bank and then withdraw cash. They will then deposit the same check into a second bank before the first check has cleared, allowing them to withdraw more cash. This cycle may continue several times, artificially inflating the amount of cash on hand. This is a form of check fraud which involves creating non-existent cash balances, and is often used to cover up a theft. Lapping involves stealing money and covering it up by applying subsequent payments to prior balances, misappropriation of assets refers to theft or misuse of company assets, and concealment refers to hiding evidence of a fraudulent activity.

One Fraudulent Scheme Covers Up a Theft by Creating Cash