Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a common control over cash receipts?

Segregation of duties between employees handling cash and those recording transactions

Recording cash receipts only at the end of the month

Allowing a single employee to both receive and deposit cash

Delaying the deposit of cash receipts until the end of the week

Previous problemNext problem

Verified step by step guidance

Understand the concept of internal controls over cash receipts. Internal controls are procedures and policies designed to safeguard assets, ensure accurate financial reporting, and promote operational efficiency.

Recognize that segregation of duties is a key principle in internal controls. It involves dividing responsibilities among different employees to reduce the risk of errors or fraud. For example, the person handling cash should not be the same person recording transactions.

Evaluate the options provided in the problem. Segregation of duties is a common control because it minimizes the risk of theft or misappropriation of funds. Recording cash receipts only at the end of the month, allowing a single employee to handle both receiving and depositing cash, or delaying deposits until the end of the week are not effective controls and increase the risk of errors or fraud.

Consider the importance of timely recording and depositing of cash receipts. Delaying these processes can lead to discrepancies and increase the risk of theft or loss.

Conclude that the correct answer is segregation of duties between employees handling cash and those recording transactions, as it aligns with best practices for internal controls over cash receipts.