Question

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

a. Depositing cash receipts
b. Processing cost reports
c. Analyzing equipment purchases
d. Approving credit for a customer
e. Paying a vendor

Answer 1

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the most appropriate answer is option (B) because the work of a controller is to control and manage the office operation while the work of a treasurer is to manage the cash and cash related operations.

The processing of the cost report is the work for office operation and hence it comes under the controller.  

While the other options are not correct because of the following reasons:

• Option (A) is not correct because depositing cash receipts is related to cash operations.  

• Option (C) is not correct because analyzing equipment purchase is also a work of treasurer because he has to pay for the equipment.

• Option (D) is not correct because approving credit limit is also a cash related operation.

• Option (E) is not correct because paying a vendor is also a cash related operation.