The Internal Control of Cash Receipts Related to Adequate Records

question 101

Multiple Choice

The internal control of cash receipts related to adequate records and documents would include which of the following?

• A)Cash receipts listings prepared on a daily basis and reconciled to supporting documentation from the bank deposit
• B)Bank deposit receipts should be retained and filed chronologically.
• C)Detailed customer accounts should also be maintained and reconciled with customer statements regularly.
• D)All of the above

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Definitions:

Departmentalization

The method an organization uses to divide its operations and functions into manageable sections based on task, geographic location, product, or service.

External Environments

All elements outside of an organization that can affect its performance and strategy, including economic, technological, socio-cultural, and legal factors.

Mechanistic Structures

Organizational frameworks characterized by rigorous procedures, clear hierarchies, and distinct roles, aiming for efficiency and predictability.

Organic Structures

Flexible and adaptive organizational structures that foster innovation, creativity, and responsiveness, emphasizing informal networks and decentralized decision-making.