Which of the Following Procedures Would Weaken the Control Over

question 52

Multiple Choice

Which of the following procedures would weaken the control over cash receipts that arrive through the mail?

• A)After the mail is opened,a list (in triplicate) of the money received is prepared with a record of the sender's name,the amount,and an explanation of why the money is sent.
• B)The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.
• C)For safety,only one person should open the mail and that person should immediately deposit the cash received in the bank.
• D)The cashier should not also be the record keeper who records the amounts received in the accounting records.
• E)All of the above are good internal control procedures over cash receipts that arrive through the mail.

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical theories about capitalism and his influence on the development of socialist and communist movements.

Capitalist

A person who supports or engages in the principles of capitalism, a system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the market economy driven by individuals' pursuit of their own interests.

Price Mechanism

The system by which the prices of goods and services are determined in a free market, based on the principles of supply and demand.