A Critical Element of Internal Control Over Collections of Accounts

question 98

Multiple Choice

A critical element of internal control over collections of accounts receivable is:

• A)the separation of cash-handling and cash-accounting duties.
• B)setting up a petty cash account.
• C)using a cheque-writing machine.
• D)depositing the cash from the cash register on a daily basis.

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Definitions:

Regressive Tax

A tax applied uniformly, taking a larger percentage of income from low-income earners compared to high-income earners.

Tax System

The set of laws and regulations that govern how taxes are collected from individuals, businesses, and other entities within a country or specific jurisdiction.

Progressive Tax

A tax system where the tax rate increases as the taxable income increases, typically designed to tax higher-income individuals more heavily.

Proportional Tax

A tax system where the tax rate is fixed and applied equally to all taxpayers, irrespective of income level.