Proper Separation of Duties Is Useful to Prevent Various Types

question 2

Multiple Choice

Proper separation of duties is useful to prevent various types of misstatements.Which one of the following is NOT an essential separation of duties?

• A) Persons having access to cash should not have access to marketable securities.
• B) Anyone responsible for inputting sales and cash receipts transactions information into the computer should be denied access to cash.
• C) Personnel doing internal comparisons should be independent of those entering the original data.
• D) Separate the credit-granting function from the sales function.

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Definitions:

Credit Card Sales

Transactions in which customers use credit cards to pay for goods or services, creating a receivable for the seller until payment is processed by the card issuer.

Summary Journal Entry

A consolidated record that summarizes multiple transactions into a single entry within the accounting records.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue.