Which of the Following Is not a Control That Generally

question 26

Multiple Choice

Which of the following is not a control that generally is established over cash receipts?

• A)To prevent abstraction of cash,a control listing of cash receipts should be prepared by mailroom personnel.
• B)To ensure accurate posting,the accounts receivable clerk should post the customers' receipts from customers' checks.
• C)To ensure accuracy of the accounts receivable records,the records should be reconciled monthly to the accounts receivable controlling account.
• D)To prevent theft of cash,receipts should be deposited daily.

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Definitions:

Trust Fund

A legal entity set up to hold property or assets for the benefit of another party, often managed by a trustee.

Rate of Return

The upward or downward adjustment in an investment's value through a defined span, represented as a fraction of the investment's initial expense.

Growing Annuity

A finite number of growing annual cash flows.

Cash Flow Growth Rate

The rate at which a company's cash flow increases over a specified period, indicating the health and profitability of the business.