Which of the following is the basic internal control procedure with respect to cash receipts?
A) depositing all cash receipts in the bank shortly after the cash is received
B) requiring customers to pay with debit or credit cards
C) requiring the accountants to make the bank deposits
D) preventing collusion

Question

Quizplus · Accepted Answer

Depositing all cash receipts in the bank shortly after the cash is received is the basic internal control procedure with respect to cash receipts. This helps to minimize the risk of cash being lost, stolen, or mishandled within the organization. It also provides a clear record of the cash receipt and ensures that the organization has up-to-date information on its cash position. Requiring customers to pay with debit or credit cards and preventing collusion are also important internal controls, but they are not basic procedures with respect to cash receipts. Requiring the accountants to make bank deposits may be a good internal control, but it should be combined with other procedures to ensure that cash is handled properly throughout the organization.

Which of the Following Is the Basic Internal Control Procedure