Which of the Following Internal Control Activities Most Likely Would

question 71

Multiple Choice

Which of the following internal control activities most likely would deter lapping of collections from customers?

• A) Independent internal verification of dates of entry in the cash receipts journal with dates of daily cash summaries.
• B) Separation of duties between receiving cash and posting the accounts receivable ledger.
• C) Authorization of write-offs of uncollectible accounts by a supervisor independent of credit approval.
• D) Supervisory comparison of the daily cash summary with the sum of the cash receipts journal entries.
• E) Segregation of duties between cash payments and recording checks.

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Definitions:

Capital Intensive

Describing a business that requires significant investment in capital assets like machinery and equipment to produce goods or services.

Customer Relationship

The management of interactions and engagements between a business and its customers, focusing on long-term relationship building.

Tangible Property

Physical assets that can be touched and seen, such as real estate, equipment, and inventory.

Operational Excellence

A philosophy of organizational leadership that emphasizes continuous improvement, problem-solving, and employee engagement to ensure sustainable business growth.