A company is concerned with the theft of cash after the sale has been recorded.One way in which fraudsters conceal the theft is by a process called "lapping." Which of the following best describes lapping?
A)Reduce the customer's account by recording a sales return
B)Write off the customer's account
C)Apply the payment from another customer to the customer's account
D)Reduce the customer's account by recording a sales allowance

Question

Quizplus · Accepted Answer

Lapping refers to the process of applying a payment from one customer to the account of another customer in order to conceal the theft of cash received from the first customer. This allows the fraudster to continue to hide the missing cash until they can cover it up with subsequent payments from other customers.

A Company Is Concerned with the Theft of Cash After