A form of fraud in which the payments made by one customer are systematically applied to the account of another is called:
A) lapping
B) malfeasance
C) pre-posting
D) knitting

Question

Quizplus · Accepted Answer

The term lapping refers to a fraudulent technique where payments received from one customer are applied to the account of another customer in order to conceal an embezzlement. So, option A is the correct choice. Option B, malfeasance refers to illegal or dishonest activity carried out by a person in authority, option C, pre-posting is not a term used in the context of accounting fraud, and option D, knitting is not a term used in the context of financial fraud.

A Form of Fraud in Which the Payments Made by One