Question

Carpet Mill has

▼
strong
weak
internal controls. There is
▼
a good separation of duties
a good system of documenting transactions
not a good separation of duties
not a good system of documenting transactions
.
▼
Different people receive cash, record the cash, and deposit the cash
The accountant should maintain detailed records of the accounts receivable that are collected
The cash collected is properly summarized and recorded by the accountant.
The same person receives cash, records the cash, and deposits the cash
.

Answer 1

See below

Step-by-step explanation:

An important step in protecting cash is to separate cash handling duties among different people. The objective is to ensure no single person has complete control over the entire cash process.

Carpet Mill has strong internal controls if there is

1. A good separation of duties
2. A good system of documenting transactions
3. Different people receive cash, record the cash, and deposit the cash
4. The accountant should maintain detailed records of the accounts receivable that are collected
5. The cash collected is properly summarized and recorded by the accountant.

Carpet Mill will have weak internal controls when there is

• not a good separation of duties
• not a good system of documenting transactions
• The same person receives cash, records the cash, and deposits the cash