Accounting Multiple Choice Question – 6 December 2025

The following is an example of an internal control that operates at Elm plc:

• The payables ledger clerk posts invoices to the payables ledger. The cash book clerk posts cash receipts to the payables ledger.

For the example above, select the type of control activity which it illustrates.

Select ONE answer:

1. Information processing
2. Segregation of duties
3. Performance review
4. Performance review

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct => Having separate clerks recording purchase invoices and posting cash payments in the payables ledger reduces the risk of fraud and error (is therefore a segregation of duties control).
3. Not correct
4. Not correct

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