One Method of Establishing Control Over Collections of Accounts Receivable

question 21

Multiple Choice

One method of establishing control over collections of accounts receivable is to:

• A)allow no one but the bookkeeper to handle cash.
• B)designate an authorized cheque signer.
• C)set up a petty cash fund.
• D)establish a bank lock box.

---

Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, with minimal unemployment.

Positive Statement

A factual claim about how the world actually works, verifiable by observation or scientific evidence, as opposed to normative statements which involve values and judgements.

Humidity Level

The amount of water vapor present in the air, expressed as a percentage of the amount needed for saturation at the same temperature.

Temperature

A measure of the average kinetic energy of the particles in a substance, indicating how hot or cold the substance is.