For each of the following cash activities, choose the appropriate letter to match the activity with the internal control principle to which it relates. Each internal control principle may be used more than once. A password is required to open up the cash register The treasurer is the person who is approved to sign checks A list of checks received in the mail is prepared A bank reconciliation is prepared each month A. Restrict access B. Independently verify C. Establish responsibility D. Document procedures

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Business

Maxine

1 October, 04:36

For each of the following cash activities, choose the appropriate letter to match the activity with the internal control principle to which it relates. Each internal control principle may be used more than once. A password is required to open up the cash register The treasurer is the person who is approved to sign checks A list of checks received in the mail is prepared A bank reconciliation is prepared each month A. Restrict access B. Independently verify C. Establish responsibility D. Document procedures

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Linus · Answer 1

A. Restrict access

C. Establish responsibility

D. Document procedures

B. Independently verify

Explanation:

A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.

C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.

D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.

B. Independently verify - Bank Reconciliation Statement is prepared to verify the transactions and match the balance in books with that of the bank pass book.