A cashier in an antiques store rang up a sale for $200 instead of $250 and kept the $50 difference. What type of fraud is this an example of?

• A. A An unrecorded sales (skimming) scheme
• B. B A cash larceny scheme
• C. C An understated sales (skimming) scheme
• D. D Lapping of receivables

Answer: (C)

The main idea here is a skimming tactic that hides theft by underreporting revenue. The cashier collected $250 from the customer but recorded the sale as $200, keeping the extra $50. The cash was received, but the books show a smaller sale, so revenue is understated while cash went to the cashier. That combination—taking cash and recording a lower sale amount—is a form of understated sales, a type of skimming. It’s not cash larceny, which involves stealing cash after it’s already been recorded as a receipt, and it isn’t lapping, which concerns misappropriating receivables. It also isn’t unrecorded sales, which would mean the sale itself isn’t recorded at all.