Question

multiple select question
select all that apply
identify internal controls related to cash payments:
□ issue checks only for approved bills and invoices
□ enter all cash payment transactions into the accounting records promptly
□ require a designated employee to write, sign, and mail all checks

Explanation:

Internal controls for cash payments aim to prevent fraud, ensure accuracy, and maintain proper records. Issuing checks only for approved bills ensures payments are legitimate. Promptly recording cash payments maintains accurate, up-to-date accounting records. Having one employee handle all check-writing, signing, and mailing violates separation of duties, a key internal control principle, so it is not a valid control.

Answer:

• issue checks only for approved bills and invoices
• enter all cash payment transactions into the accounting records promptly