What Is One Way to Segregate Duties to Improve Controls

question 98

Multiple Choice

What is one way to segregate duties to improve controls over cash?

• A)Request all customers to pay in cash.
• B)Separate sales employees from employees who book the accounting entries.
• C)Request all customers to pay by cheques made payable to "CASH."
• D)Have the employee who is responsible for making cash deposits to the bank also do the bank reconciliations.

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Definitions:

Price to Clear

The price to clear is the market price at which the quantity supplied equals the quantity demanded, thereby clearing the market without leaving surplus or shortage.

Perfectly Competitive Industry

A Perfectly Competitive Industry is characterized by many sellers and buyers, free entry and exit, and a product that is identical across suppliers, leading to no single entity having market control.

Marginal Cost

The additional cost of producing one extra unit of a good or service.

Total Revenue

The total amount of money a company receives from selling its goods or services before any expenses are subtracted.