The separation of the custody of cash from the accounts receivable record keeping will help to minimize the related risk of:
A)Invalid cash receipts
B)Incorrect amounts
C)Invalid transactions
D)Duplicate transactions

Question

Quizplus · Accepted Answer

Separating custody of cash from accounts receivable record keeping will prevent the possibility of unauthorized individuals recording false cash receipts, which is the risk of invalid cash receipts. It will not directly affect the risks of incorrect amounts, invalid transactions, or duplicate transactions.

The Separation of the Custody of Cash from the Accounts