Which Is Not a Key Element of Internal Control Over

question 4

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 bank deposits

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Definitions:

Economic Viability

The ability of an entity, project, or activity to sustain its operations and make a profit over the long term.

Wrongful Dissociation

In the context of business partnerships or limited liability companies, this term refers to the improper withdrawal of a partner or member from the business, breaching the operating agreement and possibly resulting in liability.

Novation

Novation is the act of replacing one obligation with another by mutual agreement, effectively transferring the rights and duties to a new party.

Valid Obligation

A duty or commitment that is legally binding and enforceable by law.