A basic principle of internal control over cash receipts is that the deposit of the cash and the recording of the receipts into the ledger should be separated.

Question

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This principle is known as segregation of duties, which helps prevent fraud or errors by ensuring that no single individual has too much control over the cash receipts process. Separating the person who handles the cash from the person who records the transactions provides a system of checks and balances that helps ensure the integrity of the accounting records.

A Basic Principle of Internal Control Over Cash Receipts Is