Which of the following statements about skimming is CORRECT?

Detailed Explanation:

Rationale for Correct Answer: Skimming is the theft of incoming cash before it is recorded in the books . Since the payment is never recorded, no audit trail exists, making it an “off-book” scheme.

Analysis of Incorrect Options:

A – Incorrect; skimming can involve both sales and receivable payments.

C – Incorrect; skimming is off-book , not on-book.

D – Incorrect; skimming is typically harder to detect than larceny, since there is no record.

Key Concept: Skimming vs. larceny – off-book theft of cash receipts.