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.

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Definitions:

Customers Served

The total number of customers who purchase or consume services within a specific time period.

Budgeting

The process of creating a plan to spend your money, outlining an organization's financial and operational goals.

Flexible Budget

A budgeting method that adjusts or scales according to the changes in activity or volume levels within a company.

Patient-Visits

The number of occasions when patients receive care from healthcare facilities or providers.