Question

Meredith Chapman works as a retail clerk at a children's clothing store. When a customer returns an item for a cash refund, Meredith enters an amount greater than the actual refund into the register, pays the customer the amount owed for the returned merchandise, and keeps the excess cash for herself. What type of scheme is Meredith committing?

1) Overstated expenses
2) Cash larceny
3) Overstated refunds
4) Skimming

Answer 1

4) Skimming. Meredith Chapman is committing a skimming scheme by entering an amount greater than the actual refund into the register and keeping the excess cash for herself.

Step-by-step explanation:

The type of scheme that Meredith Chapman is committing is skimming.

Skimming is a type of cash theft that occurs when cash is stolen before it is recorded in the accounting system. In this case, Meredith is purposely entering an amount greater than the actual refund into the register and keeping the excess cash for herself.

Skimming schemes are often difficult to detect because they do not involve altering financial records. However, employers can implement control measures such as regular cash audits and surveillance cameras to help prevent and detect skimming.