Allowing Only Designated Personnel to Handle Cash Receipts Is an Example

question 52

Multiple Choice

Allowing only designated personnel to handle cash receipts is an example of

• A) establishment of responsibility.
• B) segregation of duties.
• C) documentation procedures.
• D) independent internal verification.

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Definitions:

Raising Money

Raising money involves securing funds for a company or project through various means like debt, equity, or grants.

Securities

Financial instruments that represent ownership (stocks), a creditor relationship (bonds), or rights to ownership (derivatives) that can be bought and sold.

Future Cash Flows

Projected cash receipts and payments over a certain period, considered in investment analysis to determine an asset's present value.

S-corporation

A special type of corporation in the U.S. that allows profits, and some losses, to be passed directly to owners’ personal income without being subject to corporate tax rates.