Eva Johnson handles cash receipts and has the authority to write off accounts receivable. This violates separation of: A. custody of assets from accounting B. operations from accounting C. duties within the accounting function D. authorization of transactions from custody of related assets
Eva Johnson handles cash receipts and has the authority to write off accounts receivable. This violates separation of: A. custody of assets from accounting B. operations from accounting C. duties within the accounting function D. authorization of transactions from custody of related assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have this homework problem but I don't have the time. Please help
Transcribed Image Text:Eva Johnson handles cash receipts and has the authority to write off accounts receivable. This
violates separation of:
A. custody of assets from accounting
B. operations from accounting
C. duties within the accounting function
D. authorization of transactions from custody of related assets
Expert Solution
Step 1
Hi
Since there are many sub parts of this question, so we will answer first four sub parts only.
Sub part 1
Eva Johnson handles cash receipts and has the authority of write off accounts receivable. This violates separation of operations from accounting.
Correct answer is b.
Sub part 2
Randall Benson keeps both the cash receipts journal and cash payments journal. This violates separation of duties within the accounting function.
Correct answer is c.
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