A band who fails to record the cash they collected for admission to their shows could be charged with what illegal practice?
A)cash diversion
B)tax evasion
C)skimming
D)payroll tax avoidance

Question

Quizplus · Accepted Answer

Skimming is the illegal practice of not recording cash transactions in order to avoid paying taxes on that income. In this case, the band is not recording the cash collected for admission to their shows, which is a form of skimming. Cash diversion refers to the intentional use of cash for personal expenses or purposes other than what it was intended for. Tax evasion is the intentional underreporting of income or overstatement of expenses to avoid paying taxes. Payroll tax avoidance involves not paying taxes on employee wages or salaries. None of these options describe the situation of a band failing to record cash collected for admission.

A Band Who Fails to Record the Cash They Collected