Which of the Following Is the Basic Internal Control Procedure

question 69

Multiple Choice

Which of the following is the basic internal control procedure with respect to cash receipts?

• A) depositing all cash receipts in the bank shortly after the cash is received
• B) requiring customers to pay with debit or credit cards
• C) requiring the accountants to make the bank deposits
• D) preventing collusion

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Definitions:

Consumer Surplus

The difference between the maximum amount a person is willing to pay for a good and its current market price.

Law of Diminishing Marginal Utility

An economic principle stating that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.

Marginal Utility

Marginal Utility is the added satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Diminishing Marginal Utility

The principle that the utility or satisfaction gained by consuming each additional unit of a good or service decreases as more of that good or service is consumed.