Which of the Following Is NOT an Internal Control Over

question 188

Multiple Choice

Which of the following is NOT an internal control over the petty cash fund?

• A) Petty cash tickets are sequentially numbered.
• B) A specific amount of cash is designated to be kept in the petty cash fund.
• C) Petty cash tickets serve as the authorization voucher and explanation.
• D) Two custodians should be assigned responsibility for the petty cash fund.

---

Definitions:

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purpose of making informed business decisions.

Internal Operations

The activities and processes carried out within an organization to keep it running, including production, human resources, and finance.

Manufacturing Statement

A financial statement that summarizes the costs of producing goods during a specific period.

Schedule of Cost

A detailed report that outlines the various costs involved in producing a product, including direct materials, direct labor, and manufacturing overhead.