Select the statement that is TRUE.
A) Skimming is the theft of assets before being recorded, and larceny is theft of assets after they are recorded in the books.
B) Larceny is the theft of assets before being recorded, and skimming is theft of assets after they are recorded in the books.
C) Skimming can only occur with cash as other forms of payment are easily tracked.
D) Larceny can only occur with physical assets other than cash and may or may not be concealed.

Question

Quizplus · Accepted Answer

Skimming involves the theft of cash before it is recorded in the accounting records, making it hard to detect because the money is taken before it enters the system. Larceny, on the other hand, refers to the theft of assets, including cash, after they have been recorded in the books, which can be easier to detect through discrepancies in the records.

Select the Statement That Is TRUE