Which of These Does Not Represent Proper Internal Control of Cash

question 35

Multiple Choice

Which of these 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:

Fixed Costs

Expenses that do not vary with the level of output or sales, such as rent, insurance, and salaries, distinguished by their consistency.

Marginal Costs

The extra cost incurred by producing one additional unit of a product.

Indifferent

A state where an individual or group has no preference or difference in satisfaction among options, showing no bias or partiality towards any choice.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.