In a Manual Data Processing System,the Custody of Cash and the Recording

question 8

True/False

In a manual data processing system,the custody of cash and the recording of cash receipts in the cash journal should be combined for maximum control.

---

Definitions:

Accounting Standard-Setting Body

An organization that establishes benchmarks or rules for preparing and presenting financial statements and other related accounting practices.

Securities and Exchange Commission

The U.S. federal agency responsible for regulating the securities industry and ensuring public companies adhere to disclosure laws.

Proprietorship

A business that is owned and run by one individual, where there is no legal distinction between the owner and the business entity.

Legal Entity

An organization that possesses legal rights and responsibilities, including the ability to enter contracts, sue, and be sued; can be a company, non-profit, or government organization.