Internal control procedures for cash receipts require
A) Separation of custody of cash receipts from their recordkeeping
B) In-store cash sales be recorded on a cash register at the time of each sale
C) All cheques to be numbered in sequence
D) Separation of custody of cash receipts from its recordkeeping and in-store cash sales be recorded on a cash register at the time of each sale
E) All of the above

Question

Quizplus · Accepted Answer

Internal control procedures for cash receipts require separation of custody of cash receipts from its recordkeeping, as well as in-store cash sales being recorded on a cash register at the time of each sale. While numbering of cheques in sequence is important for internal control procedures, it is not explicitly required for cash receipts. Choice D is the only option that includes both necessary components.

Internal Control Procedures for Cash Receipts Require