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:

Direct Materials

Raw materials directly traceable to and integral in the production of a finished product, affecting the cost of goods sold (COGS).

Processing Departments

Sections within a manufacturing operation where specific categories of work are performed, each with its own set of production processes and costs.

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to transform raw materials into finished products.

Factory Supervisor's Salary

The compensation paid to the individual responsible for overseeing the production and personnel in a manufacturing plant.