Which of the Following Is NOT an Appropriate Internal Control

question 138

Multiple Choice

Which of the following is NOT an appropriate internal control for cash receipts over the counter?

• A) A receipt is issued for each transaction to ensure that each sale is recorded.
• B) The store clerk deposits the cash in the bank.
• C) At the end of the day, the manager proves the cash by comparing the cash in the drawer against the machine's record of cash sales.
• D) The cash draw opens after the store clerk enters a transaction.

Apply probability rules to real-life scenarios.

Comprehend the concept and calculation of conditional probability.

Analyze the independence of events through probability.

Utilize Venn diagrams and tree diagrams for visual representation of event relationships.

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Definitions:

Effective Rate

The actual interest rate an individual pays on a loan or earns on an investment, taking into account the effect of compounding.

Quarterly Compounding

A technique in which interest is computed and then compounded to the main amount quarterly.

Nominal Rate

The stated interest rate of a bond or loan, not adjusting for inflation or the compounding of interest.

Monthly Compounding

The monthly interest computation strategy that involves both the starting principal amount and the earned interest from earlier times.