A critical element of internal control over collections of accounts receivable is:
A)the separation of cash-handling and cash-accounting duties.
B)setting up a petty cash account.
C)using a cheque-writing machine.
D)depositing the cash from the cash register on a daily basis.

Question

Quizplus · Accepted Answer

The separation of cash-handling and cash-accounting duties is a fundamental internal control measure to prevent fraud and errors, ensuring that no single individual has control over both the physical cash and the accounting records.

A Critical Element of Internal Control Over Collections of Accounts