Question

Which of the following warning signs could mean receipts are being pocketed before being deposited? A. missing documents or gaps in transaction numbers B. an unusual increase in customer refunds C. a sudden increase in cash payments D. a difference between daily bank and cash balance

Answer 1

Answer:

D. a difference between daily bank and cash balance

Explanation:

Once receipts are made, they will be recorded in the organisation or company's cashbook thus increasing the cash balance. If the receipts are not deposited into the bank account, there will be a difference between the cash and bank balance. Pocketing receipts in this manner is an example of a fraudulent activity.