X Company is concerned that it does not have enough employees to ensure adequate segregation of duties in its revenue cycle. Which of the following may be performed by the same individual?

A. Approving sales and delivering the inventory from the storage area to the shipping area.

B. Opening the mail and reconciling the perpetual inventory records to the physical count.

C. Opening the mail and recording entries in the sales journal.

D. Recording entries in the sales journal and delivering inventory from the storage area to the shipping area.

Question

Business

Catalina Foster

31 March, 02:31

X Company is concerned that it does not have enough employees to ensure adequate segregation of duties in its revenue cycle. Which of the following may be performed by the same individual?

A. Approving sales and delivering the inventory from the storage area to the shipping area.

B. Opening the mail and reconciling the perpetual inventory records to the physical count.

C. Opening the mail and recording entries in the sales journal.

D. Recording entries in the sales journal and delivering inventory from the storage area to the shipping area.

+2

Answers (1)

Know the Answer?

Luke Griffin · Answer 1

The correct answer is C) Opening the mail and recording entries in the sales journal.

Explanation:

It is the correct answer because both activities can be done sitting on the desk, using the same computer. All the other answers refer to activity pairs that would require physical activity, and this would reduce efficiency. For example, making journal records and delivering inventory are extremely disjointed activities, it is like being an accountant and a delivery person at the same job.