Below Are Descriptions of Internal Control Problems

question 25

Short Answer

Below are descriptions of internal control problems. In the space to the left of each item, enter the code letter of the one best internal control principle that is related to the problem described.
1. The same person opens incoming mail and posts the accounts receivable subsidiary ledger.
2. Three people handle cash sales from the same cash register drawer.
3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out of the store without paying for the merchandise.
4. The person who is authorized to sign checks approves purchase orders for payment.
5. Some cash payments are not recorded because checks are not prenumbered.
6. Cash shortages are not discovered because there are no daily cash counts by supervisors.
7. The treasurer of the company has not taken a vacation for over 20 years.

Recognize the traits and mindset of successful entrepreneurs, including internal locus of control.

Identify different types of entrepreneurs and entrepreneurial ventures.

Debunk myths about entrepreneurship, such as the necessity of wealth for success.

Understand the importance of risk-taking and innovation in entrepreneurship.

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Definitions:

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Sampling Frame

The individuals or clusters of individuals in a population who might actually be selected for inclusion in the sample.

Quota Sampling

A sampling method where the selection of participants is based on pre-specified characteristics or quotas to ensure representation.

Nonprobability Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.