The Bonita Springs startup is documenting a control route for owner receipt posting. Which procedure should be established?
Correct Answer
B) cash-receipts workflow
Startup internal controls should define cash receipts, payables approval, and bank review schedules.
Why This Is the Correct Answer
Startup internal controls should define cash receipts, payables approval, and bank review schedules.
Why the Other Options Are Wrong
Option A: bid addendum log risk setup folder
bid addendum log risk setup folder puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option C: equipment title file operations startup note
equipment title file operations startup note puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option D: punchlist register startup control file
punchlist register startup control file puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Memory Technique
Startup Internal ledger for Controller Sets: put controls in the right drawer.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Internal controls for cash, payables, and bank review; verify the startup duty, registration, or financial setup before answering.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?