Tanya inflates the amount of customer refunds at a department store. This scheme is known as:

• A. A false void scheme
• B. An overstated refund scheme
• C. A fictitious refund scheme
• D. Skimming

Answer: (B)

Inflating refunds is a type of overstated refund scheme. When a cashier or employee records a refund for more money than was actually issued (or creates a refund for a transaction that didn’t occur), the refunds figure in the records appears larger than reality. This distorts financial results by lowering reported revenue and cash flow, and it can enable misappropriation of funds if cash is taken or misdirected during the refunds process. This choice matches the act of making refunds appear bigger than they truly are. Other patterns involve refunds that never happened (fictitious refunds), voiding sales to hide them (false voids), or taking cash before it’s recorded (skimming), but inflating the refund amount fits the description of an overstated refund scheme.