Question

James and a client went out for dinner and the client paid for the dinner. However, James submitted a copy of the receipt and requested reimbursement. What scheme is this? Select one: a. Mischaracterized expense reimbursement b. Duplicate reimbursement scheme X c. Overstated expense reimbursement Od. Fictitious expense reimbursement

Answer 1

Hi there,

Here's my answer to the question asked.

The correct option is "Mischaracterized expense reimbursement".

What is Mischaracterized expense reimbursement :

In Businesses they generally reimburse their employees and staff for their pocket expenses that their policies identify as reimbursable as like journeys, staying & meals. In this scheme, the person just simply requests the reimbursement of an amount spent that is not at all related to business purpose.

In this scheme they mainly claim the reimbursement as it is of personal nature and not for business purpose.

In the given case, James and client went for dinner and client paid out the bill .But James has claimed as reimbursement expenses from company.But it is actually not related to business purpose and they went out for personal purpose as Jmaes can not claim as reimbursement. So it attract Mischaracterized expense reimbursement and nothing shall be alllowed as reimbursement.

Hence this option is exactly apt to the case given above.

But it doesn't match with Duplicate expense reimbursement,overstated expense reimbursement and fictitious expense reimbursement.

Here are the few lines about the other wrong options.

Overstated expense reimbursements :

In this scheme, the employee wantedly increases the cost of actual business expenses. It also can be defraud in many different way, includes modifying receipts or excess purchasing and benefiting from some a refund or discount. In most of the cases, this scheme requires not only staffnkrsemployee but also persons who handles the process or business reports can alter it .The staff or employee may use ball pens, stick pens and whitener to make change bill before produced with team.

Fictitious expense reimbursements:

In this scheme,the staff or workers shall make the request for reimbursement for complete fictitious expenses. The perpetrators prepare the false expense report and produce it for reimbursement, which is divert to increased real business expenses or requesting to get back amount for personal expenses.