A Critical Element of Internal Control Over Collections of Accounts

question 98

Multiple Choice

A critical element of internal control over collections of accounts receivable is:

• A)the separation of cash-handling and cash-accounting duties.
• B)setting up a petty cash account.
• C)using a cheque-writing machine.
• D)depositing the cash from the cash register on a daily basis.

---

Definitions:

Identifiable

Able to be recognized or distinguished as separate and distinct from others, often used in contexts like assets recognition in accounting.

Market Knowledge

An understanding of the dynamics of a specific market, including competitors, customer behavior, and market trends.

Trained Staff

Employees who have received specific education, instruction, and practice to improve their skills and competencies for their job roles.

Controlled

In a business context, it refers to the ability to direct the management and policies of a company through ownership, contract, or influence.