Which Is Not a Key Element of Internal Control Over

question 81

Multiple Choice

Which is not a key element of internal control over cash receipts?

• A)daily recording of all cash receipts in the accounting records
• B)daily entry in a voucher register
• C)immediate counting by the person opening the mail or using the cash register
• D)daily deposit intact

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Definitions:

Discount Rate

The interest rate charged by central banks on loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over their life up to a specific point in time.

Working Capital

Working Capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Net Operating Cash Flows

The cash generated from the normal operations of a business, excluding capital expenditures and investment income.