Question

Which of the following is NOT an appropriate internal control for cash receipts over the counter?

(A) A receipt is issued for each transaction to ensure that each sale is recorded.
(B) The storeroom is locked when not in use.
(C) Employees are rotated on a regular basis.
(D) Bank reconciliations are performed monthly.
(E) Cash receipts are deposited in the bank daily.

Answer 1

Option (C) The appropriate internal control for cash receipts over the counter is not rotating employees on a regular basis.

Step-by-step explanation:

The appropriate internal control for cash receipts over the counter is not (C) Employees are rotated on a regular basis.

Rotating employees on a regular basis is not a specific internal control for cash receipts over the counter. It is a control measure that is more commonly used to prevent fraud or errors in other areas, such as inventory management.

The other options listed are all appropriate internal controls for cash receipts over the counter. They help ensure that each sale is accurately recorded, that cash is secured and deposited promptly, and that bank reconciliations are performed regularly.