-Which of the Following Problems Is Evident in the Systems

question 30

Multiple Choice

-Which of the following problems is evident in the systems flowchart above?

• A) The cash receipts department should not be preparing bank deposits.
• B) The accounting department should use the customer check to prepare journal entries.
• C) Customer checks are not endorsed prior to deposit.
• D) The company does not make bank deposits often enough.

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Definitions:

Withdrawals

Amounts of money taken out from a bank account, investment fund, or retirement plan, often referring to the owner's use of funds for personal use.

Total Liabilities

The sum of all monetary obligations a company owes to external parties, such as loans, accounts payable, and mortgages.

Owner's Equity

Represents the residual interest in the assets of a business after deducting liabilities, essentially the net worth belonging to the owners.

Total Assets

Represent the sum of all assets a company owns, including cash, inventory, property, and equipment, among others, showing the total value of what the company controls.