The Cashier Diverted Cash Received Over the Counter from a Customer

question 108

Multiple Choice

The cashier diverted cash received over the counter from a customer to his own use and wrote off the receivable as a bad debt.Select the control that should have prevented the error.

• A) Journal entries are approved by a responsible official.
• B) Receipts are given directly to the cashier by the person who opens the mail.
• C) Remittance advices, letters, and envelopes that accompany receipts are separated and given directly to the accounting department.
• D) Aging schedules of accounts receivable are prepared periodically and reviewed by a responsible official.

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Definitions:

Digestive Tract

The digestive tract is a series of hollow organs joined in a long, twisting tube from the mouth to the anus, where food is broken down into nutrients.

Extraembryonic Membranes

Membranes that are not part of the embryo but provide protection and support, including the amnion, chorion, yolk sac, and allantois.

Placenta

An organ that develops in the uterus during pregnancy, supplying oxygen and nutrients to the fetus and removing waste products via the umbilical cord.

Endodermal

Pertaining to the innermost layer of the embryonic germ layers, which gives rise to the lining of the digestive and respiratory systems.