If an employee steals cash from a company and successfully covers up his/her actions by recording a fictitious debit to Accounts Payable and a credit to Cash, then

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Recording a fictitious debit to Accounts Payable and a credit to Cash will make it seem like the company has paid off a liability, when in fact no such payment was made. This will result in liabilities being understated, as the cash stolen would have been recorded as a payment. It does not affect the balance of assets.

If an Employee Steals Cash from a Company and Successfully