Which of the following procedures would weaken control over cash receipts that arrive through the mail?
A. The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.
B. For safety, only one person should open the mail, and that person should immediately deposit the cash received in the bank.
C. The employees handling the cash receipts are bonded.
D. The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records.
E. After the mail is opened, a list (in triplicate) of the money received is prepared with a record of the sender's name, the amount, and an explanation of why the money is sent.
Answer: B
You might also like to view...
Which of the following statements is false regarding a credit memorandum?
a. A credit memorandum is added to the balance per the company's books b. A credit memorandum could be issued for interest earned on checking balances c. A credit memorandum is issued when the bank collects a note for the customer. d. A credit memorandum is subtracted from the balance per the company's books.
When a withdrawing partner withdraws assets less than his or her capital balance, the excess is treated as a bonus to the remaining partners
Indicate whether the statement is true or false
Under the Constitution Act, the provinces have the power to pass laws relating to property and civil rights
Indicate whether the statement is true or false
Customer arrival refers to
A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.