Which Statement About Internal Controls Over Cash Is Correct

question 110

Multiple Choice

Which statement about internal controls over cash is correct?

• A)Internal controls should not be designed to be preventative.
• B)A bank reconciliation is designed for prevention of problems before the fact.
• C)Controls should restrict sales staff ability to modify or delete accounts receivable.
• D)Credit notes should not be issued for customer refunds.

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Definitions:

Emotion

A complex psychological state that involves an individual's subjective experience, physiological response, and behavioral expression.

Reason

Those sentences in the argument that are used to show that the conclusion is true or that it is probably true.

Reflective

Pertaining to careful thought or contemplation, often evaluating past experiences.