The accountant who records cash receipts and credits to customer accounts should also handle the cash received and the bank deposits.

Question

Quizplus · Accepted Answer

According to the principle of segregation of duties, the accountant who records cash receipts and credits to customer accounts should not handle the cash or bank deposits. This helps to prevent fraud or errors from occurring. It is important to have different individuals or departments responsible for different aspects of the cash handling process to ensure proper controls are in place.

The Accountant Who Records Cash Receipts and Credits to Customer