Which of the Following Procedures Would Weaken Control Over Cash

question 66

Multiple Choice

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

• A)After the mail is opened,a list (in triplicate)of the money received is prepared with a record of the sender's name,the amount,and an explanation of why the money is sent.
• B)The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.
• C)For safety,only one person should open the mail,and that person should immediately deposit the cash received in the bank.
• D)The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records.
• E)The employees handling the cash receipts are bonded.

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Definitions:

Point and Figure

A charting method used in technical analysis, focusing solely on price movements rather than time or volume, to identify supply and demand trends.

Congestion Areas

Regions on a chart where a financial security's price has traded within a narrow range for a period, indicating balance between supply and demand.

Sell Signal

An indication, based on technical analysis or other factors, suggesting that it might be an advantageous time to sell a particular investment.

Trin Ratio

The Trin Ratio, also known as the Arms index, measures market sentiment by dividing the ratio of advancing and declining issues by the ratio of advancing and declining volume, often used to detect overbought or oversold conditions.