Which of the Following Is Not a Procedure to Maintain

question 56

Multiple Choice

Which of the following is not a procedure to maintain internal controls over cash payments?

• A)Checks should be properly authorized with approval signatures.
• B)A receipt should be provided to each cash customer.
• C)All checks should be prenumbered.
• D)Spoiled checks should be voided and retaineD.Providing receipts to each cash customer is a procedure to maintain internal controls over cash receipts, not cash payments.

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Definitions:

Weighted Average Delay

The mean delay time, taking into account the importance or weight of each contributing factor to the overall delay.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specific individual.

Collection Time

The typical duration required for a company to collect payments due from its clients.

Amounts

Amounts refer to the quantities or sums of money involved in financial transactions or measurements.