Which statement best describes the timing difference between larceny and skimming?

• A. Larceny occurs before the transaction is recorded; skimming occurs after.
• B. Larceny occurs after counting; skimming occurs before accounting.
• C. Larceny occurs after accounting; skimming occurs before accounting.
• D. Larceny is the same as skimming.

Answer: (C)

Skimming involves taking cash before it is recorded in the accounting system, at the point of sale, so it happens pre-recording. Larceny, on the other hand, is stealing cash after it has already been recorded in the books, meaning post-recording. Thus the timing difference is that skimming occurs before accounting, while larceny occurs after. For example, taking cash from a register before the sale is entered is skimming; taking cash that has already been recorded in the books and then removing it is larceny. This makes the statement that larceny occurs after accounting and skimming occurs before accounting the best description.