Question

Which control plan for the cash receipts function has as its primary control goal to ensure security of resources?

a. reconcile bank account regularly
b. enter cash receipts
c. immediately endorse incoming checks
d. one-to-one checking of deposit slips and checks

Answer 1

The cash receipts function control plan aimed at ensuring the security of resources is the immediate endorsement of incoming checks, which restricts their use and protects against theft or misuse. Option c.

Step-by-step explanation:

The control plan in the cash receipts function that has as its primary control goal to ensure the security of resources is immediately endorsing incoming checks option c. This practice is important because it minimizes the risk of theft or loss by marking the checks for deposit only, which restricts the ability to cash the check to the entity it is endorsed. While other control measures such as reconciling bank accounts and checking deposit slips are important for cash flow management and accuracy, immediate endorsement specifically targets the safeguard of received funds from misuse or misappropriation.