In a Sound Internal Control System, All Cash Receipts Should

question 57

True/False

In a sound internal control system, all cash receipts should be deposited daily intact.

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Definitions:

Liability Account

An accounting record that captures the amounts a company owes to creditors or other parties, reflecting the company's future obligations.

General Ledger

The comprehensive set of accounts that summarizes all transactions occurring within an organization, serving as the foundation for financial reporting.

Subsidiary Ledger

A detailed ledger that contains the individual accounts supporting a specific general ledger summary account.

Sales Returns and Allowances

Accounts that reduce total sales revenues on the income statement due to returned or damaged goods, or price allowances granted to customers.