Question

Which of the following represents good internal control procedures concerning Cash? A) Make sure that all...

Which of the following represents good internal control procedures concerning Cash? A) Make sure that all cash payments are made by check. b)Cash should be deposited only at the end of the month.

C) Designate a specific employee to open mail, handle cash, and record the cash.

D)Assign an employee responsibility of preparing the checks, signing the checks, and preparing the bank reconciliation

Homework Answers

Answer #1
Make sure that all cash payments are made by check represents good internal control procedures concerning Cash.
It reduces chances of any false cash payments.
Option A is correct
Choice B incorrect : Cash should be deposited at the end of the each day
Choice C incorrect : Separate employees should be assigned responsibilities to open mail, handle cash, and record the cash.
Choice D incorrect: The employees preparing and signing the checks should not be preparing the bank reconciliation
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