Having One Person Receive All Cash and a Different Person

question 126

Multiple Choice

Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of

• A) inadequate internal control.
• B) duplication of effort.
• C) independent check of performance.
• D) segregation of duties.

Understand and calculate net working capital from the statement of financial position.

Analyze the change in net working capital and its impact on a firm's financial health.

Determine operating cash flow using income and expense data.

Understand the impact of depreciation and interest expense on a firm's financial statements.

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Definitions:

System Air Pressure Loss

The decrease in air pressure within a system, often due to leaks or inefficiencies, which can affect system performance.

Tractor-Protection Valve

A safety device in trucks that prevents air loss in the tractor if there's a leak in the trailer, ensuring the tractor's braking system remains functional.

Pressure Bleed Down

The process of gradually reducing the pressure in a system, often as a safety or preparatory step before maintenance or inspection.