The removal of cash from a victim organization before the cash is entered in the organization's accounting system is:

• A. Skimming
• B. A fraudulent disbursement
• C. Lapping
• D. Cash larceny

Answer: (A)

Skimming is theft of cash at the point of collection, before the cash is entered into the accounting records. When money is taken before it ever appears in the books, there’s no recorded cash or receivable to match the theft, making it harder to detect and easy to conceal as a missing cash shortfall. This differs from cash larceny, which involves stealing cash after it has been recorded in the system, or from lapping, which hides theft by repeatedly applying later receipts to cover earlier ones, and from a fraudulent disbursement, which involves fake or deceitful payments from the organization. Hence, removing cash before it enters the accounting system correctly fits the concept of skimming.