Which of the Following Internal Control Activities Most Likely Would

question 79

Multiple Choice

Which of the following internal control activities most likely would deter lapping of collections from customers?

• A)Independent internal verification of dates of entry in the cash receipts journal with dates of daily cash summaries.
• B)Authorization of write-offs of uncollectible accounts by a supervisor independent of credit approval.
• C)Separation of duties between receiving cash and posting the accounts receivable ledger.
• D)Supervisory comparison of the daily cash summary with the sum of the cash receipts journal entries.

Understand the implications of signatures and endorsements on negotiable instruments.

Recognize the special rules and exceptions regarding postdated checks and certification requests.

Distinguish between order and bearer instruments and their negotiation processes.

Grasp the legal consequences of forgery and fraud on the negotiability and enforcement of instruments.

---

Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Economize

The act of reducing waste or optimizing the use of resources to save money or achieve greater efficiency.

Affluent

Describes individuals, communities, or nations with a high level of wealth and income, typically measured by the standard of living and purchasing power.

Production Possibilities Curve

A model that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.