Which of the following features should not be included in a good system of internal accounting control over cash? Select one: A. Monthly bank reconciliations are prepared by the person who makes the daily bank deposits. B. All receipts are deposited daily in the bank. C. Cash handling is separated from the recording of cash transactions. D. All major disbursements are made by check, and an imprest fund is used for petty cash disbursements.

Question

Business

Alani Gould

14 July, 04:52

Which of the following features should not be included in a good system of internal accounting control over cash? Select one: A. Monthly bank reconciliations are prepared by the person who makes the daily bank deposits. B. All receipts are deposited daily in the bank. C. Cash handling is separated from the recording of cash transactions. D. All major disbursements are made by check, and an imprest fund is used for petty cash disbursements.

+4

Answers (1)

Know the Answer?

Chance Haney · Answer 1

A. Monthly bank reconciliations are prepared by the person who makes the daily bank deposits.

Explanation:

Internal accounting control refers to internal controls created and operated by the management with respect to accounting so as to prevent and detect errors and frauds on timely basis.

Such a control requires no individual should be allowed to exercise control over a transaction from it's start to end.

In case the person in charge for banking cash daily is also in charge for preparing bank reconciliation, it gives such an individual complete control over cash and it's recording, which might lead to misappropriation of cash by him.

Hence assigning such responsibility would be in violation of good internal accounting control system.