Which of the Following Does Not Represent Proper Internal Control

question 25

Multiple Choice

Which of the following does not represent proper internal control of cash receipts?

• A) Daily banking of receipts.
• B) Two people opening the mail.
• C) Paying accounts directly out of the cash register.
• D) Balancing the cash register after each employees' shift.

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Definitions:

Return on Investment

A measure used to evaluate the efficiency of an investment or to compare the efficiencies of several investments.

Divisional Performance Measure

Metrics or standards used to evaluate the efficiency, profitability, and productivity of a distinct segment or division within a larger company.

Divisional Managers

Individuals responsible for overseeing a specific division within a company, managing its operations, performance, and strategy.

Support Department Allocations

The costs of services provided by an internal support department and assigned to profit centers based on the usage of the service by each profit center.