When the Controller Reviewed the Aged Customer List, He Found

question 96

Multiple Choice

When the controller reviewed the aged customer list, he found that there was a large accounts receivable which was 60 days overdue. The name of the customer was the same last name as the company's president, who had a very uncommon name. The action that the controller should take would be

• A) ignore the situation.
• B) send the account to a collection agency and let them deal with it.
• C) give the account to a junior clerk and ask them to make a call.
• D) bring the account to the attention of the company president and ask him for his advice on collection.

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Definitions:

Money Supply

The full volume of monetary holdings in an economy, including cash, coins, and the deposits in checking and saving accounts, at a given point.

Actual Reserves

The total amount of funds that a bank has in its reserve account plus any cash on hand, used to satisfy reserve requirements.

Federal Reserve Bank

The central bank of the United States, which performs key functions in the country's financial system.

Interest Rates

The cost of borrowing money, typically expressed as a percentage, which influences economic activity by encouraging or discouraging spending and investment.