Which is not a key element of internal control over cash receipts? A) Daily entry in...

Which is not a key element of internal control over cash receipts?

A) Daily entry in a voucher register

B) Daily recording of all cash receipts in the accounting records

C) Daily bank deposits

D) Immediate counting by the person opening the mail or using the cash register

Solutions

Expert Solution

Internal control over cash recipients :-

Which is not a key element in internal control of cash reciepts :-

Considering all the small and large bussiness it is not possible to make daily Bank deposits.

Even if it is a large business also it cannot make Bank deposits on general holiday. But on general holiday also business will be happened and receives cash receipts.

Will be vouching, recording, posting in terms of accounting records and these are are compulsory internal controls to any type of business.

The person who is responsible for cash receipts will take the watcher and enter the torture in the register and also gives appropriate information to the concerned authorities to make accounting records.

Internal controls over cash receipts should compulsorily consists of recording the voichers and registers and making accounting records and also basically counting.

Compared to other given internal controls making daily Bank deposits is less important.

Hence, the answer is option C - daily Bank deposits.

these are all the information and explanations required to solve the above given question.

if there is any clarification required regarding the provided answer, please mention the main comment box.

I hope, all the above mentioned information and explanations are useful and helpful to you.

Thank you.

ekkarill92 answered 1 year ago

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