Question

Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper, who records cash receipts and accounts receivable. He failed to record the transactions.

a.True
b.False

Answer 1

The statement is true. The bookkeeper failed to record the cash paid on accounts receivable, which can lead to inaccurate financial statements and potential fraud.

Step-by-step explanation:

In this scenario, the statement is true. The bookkeeper failed to record the cash paid on accounts receivable that had been prelisted by a secretary. As a result, the cash went missing and the transactions were not recorded. This can lead to inaccurate financial statements and potential fraud.