Which of the Following Would Not Be Considered an Element

question 35

Multiple Choice

Which of the following would not be considered an element of good internal control?

• A) Require monthly reconciliation of bank accounts with the cash account.
• B) Require that all cash receipts be deposited on a daily basis.
• C) Require that the individual who handles cash receipts be responsible for the accounting function related to those funds.
• D) Require that approval for cash payments and the signing of cheques be assigned to different individuals.

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Definitions:

Cost Drivers

Factors that cause the cost of an activity to increase or decrease, influencing the total cost.

Planning Budget

A budget prepared for a specific level of activity that may be adjusted for various activity levels.

Vocational School

An educational institution that provides practical and skills-based training aimed at preparing students for specific trades, professions, or careers.

Budgets

Financial plans that estimate revenue and expenditures over a specific period, helping organizations plan their finances.