Lapping Scheme


Lapping Scheme
An accounting method that involves altering the accounts receivable section of the balance sheet when cash that is intended for the payment of a receivable is stolen. The method involves taking the first receivable collected and using that to cover the theft, while the second receivable collected is accounted to the first, the third receivable to the second, and so on.

For example, assume that $100 that was to be used to pay for a receivable is stolen from ZXC Inc. The next receivable ($125) is paid to ZXC a few days later. In a lapping scheme, the first $100 of this second payment will be accounted to the first receivable account, while the remaining $25 will be put toward the second receivable.

A lapping scheme may initially be a convenient way for a company to account for theft, but the firm must eventually account for the theft as a loss and deduct it from net income.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Milling machine — For the machine used in road construction, see Asphalt milling machine. Not to be confused with mill (grinding). Example of a bridge type CNC vertical milling center …   Wikipedia

  • arts, East Asian — Introduction       music and visual and performing arts of China, Korea, and Japan. The literatures of these countries are covered in the articles Chinese literature, Korean literature, and Japanese literature.       Some studies of East Asia… …   Universalium

  • Insect morphology — Legend of body parts Tagmata : A Head, B Thorax, C Abdomen. 1. antenna 2. ocelli (lower) 3. ocelli (upper) 4. compound eye 5. brain (cerebral ganglia) 6. prothorax …   Wikipedia

  • Canvey Island — infobox UK place country = England official name= Canvey Island static static image caption= Canvey Island s seawall and the adjacent environments at Leigh Beck. latitude= 51.5171 longitude= 0.5784 population = 37,479 shire district= Castle Point …   Wikipedia

  • History of the United Kingdom — For history prior to the Acts of Union of 1707 (Great Britain) and 1800 (Ireland), see History of England, History of Scotland, History of Wales, and History of Ireland. A published version of the Articles of Union, agreement that led to the… …   Wikipedia

  • Penske Racing — Owner(s) Roger Penske Base Mooresville, North Carolina Series IndyCar Series Sprint Cup Series …   Wikipedia

  • Drill — For other uses, see Drill (disambiguation). Drill scheme A drill or drill motor is a tool fitted with a cutting tool attachment or driving tool attachment, usually a drill bit or driver bit, used for drilling holes in various materials or… …   Wikipedia

  • Machine taper — A machine taper is a system for securing cutting bits and other accessories to a machine tool s spindle. Contents 1 Explanation 2 Use 3 Types 3.1 Morse 3.1.1 …   Wikipedia

  • Drill bit sizes — Drill bits are the cutting tools of drilling machines. They can be made in any size to order, but standards organizations have defined sets of sizes that are produced routinely by drill bit manufacturers and stocked by distributors. In the U.S.,… …   Wikipedia

  • Northern Lapwing — Peewit redirects here. For the fictional dwarf, see Johan and Peewit. Peewits redirects here. Distinguish from PWITS = possession with intent to supply (an illegal drug trade related criminal charge.) Northern Lapwing …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.