The municipal court should periodically account for all receipts.

• A. Only issued receipts must be accounted for.
• B. Only unissued receipts must be accounted for.
• C. The municipal court should periodically account for all receipts, both issued and unissued.
• D. No accounting is required.

Answer: (C)

Accounting for all receipts is a key internal-control practice in the municipal court. Periodic accounting should cover both issued receipts (those already used to document payments) and unissued receipts (the stock that could be issued for future payments). Reconciling issued receipts with recorded payments and checking the unissued stock against actual inventory creates a complete picture of revenue and helps detect discrepancies, errors, or potential misappropriation. If you only account for issued receipts, you could miss problems with the unissued portion; if you ignore unissued receipts entirely, you lack a full check on total receipts. Not accounting at all leaves no verification mechanism. So, periodic accounting of all receipts, including both issued and unissued, is the proper practice.