An understated sales scheme involves which of the following?

An understated sales scheme involves which of the following?

• A. Recording a sale for more than it actually is
• B. Skimming cash from the register without recording a sale
• C. Recording a sale for less than it actually is and skimming the difference
• D. Posting fake sales to inflate revenue

Answer: (C)

Understating sales happens when someone hides how much revenue really was, while taking the missing cash for themselves. The best description is recording a sale for less than its true amount and skimming the difference. That combination both cheats the books and steals cash, lowering reported revenue while increasing actual cash on hand. The other patterns describe different frauds: recording more than is real would inflate revenue, skimming cash without recording a sale avoids any sale entry, and posting fake sales would boost revenue, not understate it.

Understating sales happens when someone hides how much revenue really was, while taking the missing cash for themselves. The best description is recording a sale for less than its true amount and skimming the difference. That combination both cheats the books and steals cash, lowering reported revenue while increasing actual cash on hand. The other patterns describe different frauds: recording more than is real would inflate revenue, skimming cash without recording a sale avoids any sale entry, and posting fake sales would boost revenue, not understate it.