A Well Planned System of Internal Accounting Control Normally Would

question 10

Multiple Choice

A well planned system of internal accounting control normally would include procedures that are designed to provide reasonable assurance that

• A) employees act with integrity when performing their assigned tasks.
• B) decisions leading to management's authorization of transactions are sound.
• C) collusive activities would be detected by segregation of employee duties.
• D) transactions are executed in accordance with management's general or specific authorization.

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Definitions:

Cash Sales

Transactions where the purchase of goods or services is paid for with cash at the time of sale.

Sales Forecast

The process of estimating future sales, helping businesses make informed procurement, production, and marketing decisions.

Budgeted Cash

An estimation of cash inflows and outflows for a business over a specific period, used for financial planning purposes.

Collection Pattern

The typical manner or schedule with which a business collects payments from its customers.