Sound internal control dictates that immediately upon receiving checks from customers by mail,a responsible employee should
A)Add the checks to the daily cash summary.
B)Verify that each check is supported by a pre-numbered sales invoice.
C)Prepare a summary listing of checks received.
D)Record the checks in the cash receipts journal.

Question

Quizplus · Accepted Answer

Preparing a summary listing of checks received is a crucial initial step in maintaining sound internal control over cash receipts. This process ensures that all incoming checks are accounted for and can be tracked against deposits and recorded transactions, reducing the risk of theft or loss.

Sound Internal Control Dictates That Immediately Upon Receiving Checks from Customers