Which of the Following Procedures Would Weaken Control Over Cash

question 192

Multiple Choice

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

• A) The employees handling the cash receipts are bonded.
• B) For safety, only one person should open the mail, and that person should immediately deposit the cash received in the bank.
• C) The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records.
• D) After the mail is opened, a list (in triplicate) of the money received is prepared with a record of the sender's name, the amount, and an explanation of why the money is sent.
• E) The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.

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Definitions:

Intelligence Quotient

A measure of a person's cognitive abilities and intellectual potential compared to a statistical norm, typically assessed by standardized tests.

William Stern

A psychologist best known for developing the concept of the intelligence quotient or IQ.

Mental Age

A measure of an individual's mental attainment based on the age in which it takes an average individual to reach that same level of attainment.

Alfred Binet

A French psychologist best known for developing the first standardized intelligence test, which laid the foundation for modern intelligence testing.