Which of the following is not a basic means of achieving internal control over cash receipts?
A) Separate the functions of cash handling and maintenance of accounting records.
B) Prepare a daily listing of cash received through the mail.
C) Deposit all cash receipts daily in the petty cash fund.
D) Use cash registers or pre-numbered sales tickets to record cash sales.

Question

Quizplus · Accepted Answer

Depositing all cash receipts in the petty cash fund is not a basic means of achieving internal control over cash receipts. Petty cash fund is used for small and routine expenses and it is not appropriate to deposit all cash receipts in it. Instead, cash receipts should be deposited in a bank account daily to prevent misappropriation and ensure accurate recording of transactions. Separating the functions of cash handling and accounting records, preparing a daily listing of cash received through the mail, and using cash registers or pre-numbered sales tickets are all basic means to achieve internal control over cash receipts.

Which of the Following Is Not a Basic Means of Achieving