Question

Cash receipts are prelisted by the receptionist. The accounting manager reconciles control totals generated by the accounts receivable computer program. The computer summaries of cash collections and cash sales are reconciled to prelistings of cash receipts and cash deposits by the accounting manager.

a) Financial Analysis
b) Internal Control
c) Auditing
d) Budgeting

Answer 1

The subject of this question is Internal Control. Internal control refers to the systems and processes put in place by a company to safeguard its assets and promote operational efficiency.

Step-by-step explanation:

The subject of this question is Internal Control.

Internal control refers to the systems and processes put in place by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency. It includes procedures such as segregation of duties, physical safeguards, and regular reconciliations.

In this case, the receptionist prelists the cash receipts, and the accounting manager reconciles control totals and computer summaries to prelistings of cash receipts and deposits. These actions are part of internal control measures to ensure that all cash transactions are properly recorded and accounted for, reducing the risk of fraud or errors.