Answer the following statements true (T) or false (F)
1) Credit department employees must have access to cash in order to exercise effective internal control over receivables.
2) Separation of cash-handling and cash-accounting duties is a critical element of internal control over receivables.
3) The employees who handle cash know how customers pay and thus are in the best position to grant credit to customers.
4) Businesses must maintain a single Accounts Receivable control account regardless of the number of customers.
5) Separate customer accounts receivable are called subsidiary accounts.
1) FALSE
2) TRUE
3) FALSE - The employees who handle cash should not be in a position to grant credit to customers.
4) TRUE
5) TRUE
You might also like to view...
Explain the differences among void, voidable, and valid contracts
What will be an ideal response?
The transfer of a negotiable instrument in such a manner that the transferee becomes a holder is known as:
a. assignment. b. negotiation. c. indorsement. d. accommodation.
When a product is a conspicuous one, reference-group influence is more likely to affect the brand decision.
Answer the following statement true (T) or false (F)
Under the exclusionary rule, all evidence must be included in a criminal prosecution.
Answer the following statement true (T) or false (F)