Which of the Following Is an Essential Internal Control in the Cash

question 19

Multiple Choice

Which of the following is an essential internal control in the cash cycle?

• A)use of two signatures on payroll cheques and payables cheques
• B)independent receipt of the bank statement from the bank
• C)careful accounting of the continuity of cheques returned from the bank
• D)independent preparation of bank reconciliations

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Definitions:

Process Capability Index

A statistical measure that quantifies how well a process is able to produce output within its specification limits.

Specification Fill Weight

This term denotes the required or specified quantity of product to be filled into a container according to predetermined standards.

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean, used to quantify the amount of variation or dispersion in a set of data values.

P-chart

A type of control chart used for monitoring the proportion of defectives in a process over time in statistical quality control.