As Long as the Same Person Deposits Customer Checks and Records

question 17

True/False

As long as the same person deposits customer checks and records the deposits into the ledger,there will be good internal control over cash receipts.

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Definitions:

Omission Bias

The tendency to take whatever course of action does not require you to do anything (also called the default option).

Status Quo Bias

A cognitive bias favoring the existing state of affairs or the current baseline (the "status quo"), often leading to resistance against change.

Risk Aversion

A behavioral trait or tendency to avoid taking risks, preferring options that are perceived as safer or have more predictable outcomes.

Error Management Theory

A theory that suggests humans have evolved biases in judgment and decision-making processes to minimize the cost of errors in uncertain situations, favoring the less costly error.