Sales Underreporting
Question
Entering a sales total lower than the amount actually paid by the customer is called:
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.A
The correct answer to the question is A. Underrings a sale.
Underrings a sale is a form of sales skimming, a type of fraud where a fraudster steals cash from a business by stealing the sales proceeds before they are recorded in the business's books. In this case, underrings a sale occurs when the sales amount entered into the accounting system is lower than the actual amount paid by the customer. For example, if a customer paid $100 for goods, but the cashier only enters $80 in the system and pockets the remaining $20, that would be an example of underrings a sale.
Recording a sale procedure refers to the process of recording a sale in the accounting system. It involves recording the sale amount, the customer's details, the payment method, and other relevant information. This process is essential for accurate bookkeeping and financial reporting.
Internal sales audits are audits conducted by a company's internal audit department to ensure that sales transactions are properly recorded, accounted for, and reported. Internal sales audits are designed to identify control weaknesses and instances of fraud, such as underrings a sale.
Therefore, option D "All of the above" is incorrect as it implies that recording a sale procedure and internal sales audits are also types of underrings a sale, which is not true.
