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)Promptly reconcile bank statements with the accounting records.

Question

Quizplus · Accepted Answer

Depositing all cash receipts daily in the petty cash fund is not a basic means of achieving internal control over cash receipts. Petty cash is typically used for small, incidental expenses and should not be used for depositing cash receipts. Instead, all cash receipts should be deposited into the appropriate bank account on a daily basis. Separating the functions of cash handling and maintenance of accounting records, preparing a daily listing of cash received through the mail, and promptly reconciling bank statements with the accounting records are all basic means of achieving internal control over cash receipts.

Which of the Following Is Not a Basic Means of Achieving