What type of scheme does Katie's actions fall under when she stole cash from the register?

What type of scheme does Katie's actions fall under when she stole cash from the register?

• A. An understated sales scheme
• B. A cash larceny scheme
• C. A skimming scheme
• D. A register disbursement scheme

Answer: (B)

Katie's actions fall under a cash larceny scheme because this type of fraud involves the theft of cash that has already been recorded in the books. In a cash larceny scenario, the individual takes cash directly from a source, such as a cash register, after it has been logged into the company’s financial records. Since Katie stole cash from the register, this fits the definition of cash larceny perfectly. The other types of schemes mentioned differ in their methods and timing of the theft. Understated sales schemes typically involve manipulating sales records to show less revenue, thereby allowing the perpetrator to siphon off funds through unauthorized means. Skimming schemes involve the theft of cash before it is recorded on the books, meaning the money is taken before it even enters the accounting system. Register disbursement schemes usually involve unauthorized withdrawals or payments made from the cash register, which wouldn’t describe the situation where cash is stolen directly. Thus, since Katie's action is a direct theft of cash that has already been accounted for in the register, it clearly aligns with the characteristics of a cash larceny scheme.

Katie's actions fall under a cash larceny scheme because this type of fraud involves the theft of cash that has already been recorded in the books. In a cash larceny scenario, the individual takes cash directly from a source, such as a cash register, after it has been logged into the company’s financial records. Since Katie stole cash from the register, this fits the definition of cash larceny perfectly.

The other types of schemes mentioned differ in their methods and timing of the theft. Understated sales schemes typically involve manipulating sales records to show less revenue, thereby allowing the perpetrator to siphon off funds through unauthorized means. Skimming schemes involve the theft of cash before it is recorded on the books, meaning the money is taken before it even enters the accounting system. Register disbursement schemes usually involve unauthorized withdrawals or payments made from the cash register, which wouldn’t describe the situation where cash is stolen directly.

Thus, since Katie's action is a direct theft of cash that has already been accounted for in the register, it clearly aligns with the characteristics of a cash larceny scheme.