With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?
A)Updating the inventory subsidiary ledgers and recording purchases in the purchases journal.
B)Approving a sales return on a customer's account and depositing customers' checks in the bank.
C)Updating the general ledger and working in the inventory warehouse.
D)Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal.

Question

Quizplus · Accepted Answer

Separating the duties of entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal results in the lowest risk exposure. This is because it separates the handling of incoming and outgoing cash, reducing the risk of errors or fraud. The other options involve combining duties, which increases the risk of errors, fraud, or the potential for internal control weaknesses.

With a Limited Work Force and a Desire to Maintain