Which of the Following Controls Would Be Most Successful in Mitigating

question 92

Multiple Choice

Which of the following controls would be most successful in mitigating the theft of customer checks received in the mail?

• A) Custody of receipts by the accounts receivable manager.
• B) Restricted endorsements placed on the check as soon as it arrives.
• C) Weekly deposits to a secure bank.
• D) Reconciliation of bank accounts each month.

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Definitions:

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Discount Rate

In finance, it is the interest rate used to determine the present value of future cash flows, or the rate at which a bank lends to other banks or financial institutions.

Series Discount

A set of multiple discounts applied one after the other on a product’s price.

Invoice Terms

Conditions specified on an invoice, including payment deadlines, cash discount opportunities, and penalties for late payment.