Which One of the Following Functions Performed in an Organization

question 44

Multiple Choice

Which one of the following functions performed in an organization is a violation of internal control?

• A)A mail clerk opening the mail compares the check received with the source document accompanying the payment, noting the amount paid, then forwards the checks daily (along with a listing of the cash receipts)to the Cashier for deposit
• B)A mail clerk opening the mail compares the check received with the source document accompanying the payment, noting the amount paid, then forwards the source documents that accompany the payments (along with a listing of the cash receipts)to Accounts Receivable, on a daily basis, for posting to the subsidiary ledger
• C)At the end of the week the Cashier prepares a deposit slip for all of the cash receipts received during the week
• D)The General Ledger clerk compares the summary journal entry, received from the Cashier for cash receipts applicable to outstanding accounts, with the batch total for posting to the Subsidiary Ledger by the Accounts Receivable clerk

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Definitions:

Collateral

Collateral offered to secure a loan, subject to seizure upon default.

Collection Agency

An organization employed by creditors to collect funds that are owed by individuals or businesses, usually when those debts are past due.

Principal

The original amount of money borrowed or invested, excluding any interest or dividends.

Defaults

In financial contexts, refers to the failure to meet the legal obligations or conditions of a loan, such as not making the required payments.