Question

A ________ is a list prepared when cash is received by someone who has no responsibility for recording sales, accounts receivable, or cash, and who has no access to the accounting records.

A) prelisting of cash receipts.
B) sales invoice.
C) packing ticket.
D) vendor invoice.

Answer 1

A prelisting of cash receipts is a list used for internal control purposes when cash is received by someone not involved in recording sales or managing accounts, helping safeguard cash and ensure accurate accounting.

Step-by-step explanation:

A prelisting of cash receipts is a list prepared when cash is received by someone who has no responsibility for recording sales, accounts receivable, or cash, and who has no access to the accounting records. This control measure is part of a company’s internal controls over cash receipts, ensuring that the cash received is properly recorded and deposited. The use of a prelisting helps to prevent theft or misappropriation of funds because it involves verifying the amounts received, often by a person who is not responsible for the accounting records, thereby maintaining a segregation of duties. It's a critical step in ensuring that sales and accounts are accurately reported and that cash is safeguarded.