Which term describes failing to record cash receipts for funeral items?

• A. Embezzlement
• B. Counterfeiting
• C. Skimming
• D. Tax evasion

Answer: (C)

Skimming describes taking cash received from customers without recording it in the books. In a funeral home, cash payments for items or services may be collected but not entered into the accounting records, allowing the cash to disappear and the revenue to be understated. This form of cash theft specifically hinges on hiding the receipt of cash by keeping it out of the official records, which is what makes it the right term for failing to record cash receipts.

Embezzlement involves misusing funds that you already control or have access to, often after the money is recorded or part of the normal process. Counterfeiting is about creating or passing fake money, not about unrecorded receipts. Tax evasion relates to hiding income from taxes, not the act of not recording cash receipts in the accounting system.