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Chapter 3 – Cash Larceny Schemes
1. Cash misappropriations are divided into two broad groups: fraudulent disbursements schemes and cash receipts
2. The two categories of cash receipts schemes are:
a. Lapping and skimming
b. Lapping and cash larceny
c. Cash larceny and skimming
d. Skimming and billing schemes
3. What is the primary difference between cash larceny and skimming?
a. Cash larceny is an on-book scheme; skimming is an off-book scheme.
b. Cash larceny is an off-book scheme; skimming is an on-book scheme.
c. Cash larceny is a disbursement scheme; skimming is a cash receipts scheme.
d. Cash larceny involves cash only; skimming can involve either cash or checks.
4. Skimming involves the theft of money that has already appeared on a victim’s books, while cash larceny involves
stealing money before it has been recorded.
5. Where do most larceny schemes involving cash occur?
a. In the accounting department
b. In the mailroom
c. At the point of sale
d. At off-site locations
6. Larceny schemes are generally more difficult to detect than skimming schemes.
7. Which of the following methods can be used to conceal a larceny scheme that occurred at the point of sale?
a. Falsifying the cash count
b. Destroying the register tape
c. Stealing from another employee’s register
d. All of the above
8. If discrepancies are found between the sales records and the cash on hand, which of the following schemes might be
a. Cash larceny at the point of sale
b. Cash larceny from the deposit
c. Fraudulent disbursements
d. Sales skimming
9. The central weakness of a cash larceny scheme is the resulting imbalance in the organization’s accounting records.
10. To prevent cash larceny through falsification of cash counts, an independent employee should verify the cash count in
each register or cash box at the end of each shift.
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