Which of the Following Reflects a Weakness in the Internal

question 23

Multiple Choice

Which of the following reflects a weakness in the internal control for cash?

• A)Cash register generates receipt that documents the cash sale which is given to the customer.
• B)Two employees have access to the same cash register in order to reduce chance of theft.
• C)Person making out a check must get authorization before the check is sent.
• D)The person receiving cash in the mail can not make entries into the accounting records.

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Definitions:

Finance

The study and management of money, investments, and other financial instruments, including the processes of raising, allocating, and utilizing funds by individuals, businesses, and governments.

Historically

Referring to events, conditions, or patterns that have occurred in the past.

Securities

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.

Cash Flows

The movement of money into and out of a business, project, or financial product.