Accounting Dictionary - Letter L

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Lapping
is the theft of cash received from a customer whose account is credited at a later date with cash received from another customer. Lapping requires continuing application of cash from some customers to accounts of other customers to conceal the initial theft of cash. If cash is not replaced, total accounts receivable will be overstated.
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