One Method of Establishing Proper Internal Control Over the Collection

question 25

Multiple Choice

One method of establishing proper internal control over the collection of accounts receivable is to:

• A) set up a petty cash fund.
• B) make all disbursements by cash.
• C) establish a bank lock box.
• D) designate an authorized check signer.

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Definitions:

Nonparametric Methods

Statistical methods that are not based on parameterized families of probability distributions, used when data doesn't fit the assumptions of parametric methods.

Functioning Time

The period which a system or device is operational and performs its intended function without failure.

Kruskal-Wallis Test

A non-parametric test that is utilized to ascertain if statistically meaningful differences exist among two or more categories of an independent variable concerning a continuous or ordinal dependent variable.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted by alpha.