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:

Futures Contract

A futures contract is a standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.

Cotton

A natural fiber used in the textile industry, known for its versatility, comfort, and absorbency.