Lapping occurs when an employee steals cash and manipulates the accounts receivable entries to hide the theft.

Name: Lapping occurs when an employee steals cash and manipulates the accounts receivable entries to hide the theft.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Lapping is a form of fraud where an employee steals cash and covers it up by using incoming accounts receivable to pay off outstanding accounts receivable. This manipulation of the accounts allows the employee to continue stealing while hiding the theft.

Lapping Occurs When an Employee Steals Cash and Manipulates the Accounts