Sound Internal Control Dictates That Immediately Upon Receiving Checks from Customers

question 1

Multiple Choice

Sound internal control dictates that immediately upon receiving checks from customers by mail,a responsible employee should

• A)Add the checks to the daily cash summary.
• B)Verify that each check is supported by a pre-numbered sales invoice.
• C)Prepare a summary listing of checks received.
• D)Record the checks in the cash receipts journal.

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Definitions:

Paasche Price Index

A price index that measures the price changes between the current and a base period, weighted by the current period's spending patterns.

Goods Double

A situation where the quantity of goods available or produced doubles without a change in quality.

Laspeyres Price Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services of the type consumed during a base period.

Prices Increase

A situation where the cost of goods and services rises over a period, reducing purchasing power.