Which of the following is not an internal control procedure for the control of cash receipts?
A)Immediate preparation of records of all cash receipts.
B)Customers should be given written receipts for all monies paid.
C)All cash should be deposited frequently.
D)Use of prenumbered checks.

Question

Quizplus · Accepted Answer

The use of prenumbered checks is a control procedure for cash disbursements, not receipts. Therefore, option D is the correct answer. A, B, and C are all procedures for controlling cash receipts. Immediate preparation of records of all cash receipts ensures that all money received is accurately recorded. Customers being given written receipts for all monies paid helps in keeping track of cash inflows. Depositing cash frequently ensures that there is less cash on hand, thus minimizing the risk of loss or theft.

Which of the Following Is Not an Internal Control Procedure