Internal Control Procedures for Cash Receipts Do Not Require That

question 27

Multiple Choice

Internal control procedures for cash receipts do not require that:

• A)Custody over cash is kept separate from its recordkeeping.
• B)All collections for sales are received immediately upon making the sales.
• C)Clerks having access to cash in a cash register should not have access to the register tape or file.
• D)An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
• E)Cash sales should be recorded on a cash register at the time of each sale.

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Definitions:

Depression of 1893

A severe economic downturn in the United States that led to widespread unemployment, bank failures, and a contraction of the national economy.

Overexpansion

The rapid and often uncontrollable growth of a business, territory, or economy, which can lead to inefficiency, unmanageability, and financial problems.

American Railroads

A network of rail transport that significantly contributed to the economic development and westward expansion of the United States throughout the 19th and 20th centuries.

Railroad Industry

The railroad industry encompasses companies that operate railroads, which are large networks of track on which trains travel to transport goods and passengers.