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.

---

Definitions:

Rescission

The rescinding or cancellation of a contract or transaction. In general, its effect is to restore the parties to their original precontractual position.

Precontractual Position

Refers to the legal and factual circumstances surrounding the parties involved before entering into a contract, influencing their obligations and expectations.

Injunction

A legal order issued by a court that directs an individual or entity to do or refrain from doing a specific act.

Statutory Interpretation

The process by which courts interpret and apply legislation, focusing on the intention of the law when literal interpretations are unclear or ambiguous.