Standard Control Procedures Over Customer Remittances Received Through the Mail

question 46

Multiple Choice

Standard control procedures over customer remittances received through the mail include having the mailroom personnel:

• A) forward the remittances, unopened, directly to the accounts receivable clerk.
• B) open the mail, restrictively endorse the cheques and then forward the remittances directly to the cashier.
• C) open the mail, restrictively endorse the cheques and then forward the remittances directly to the accounts receivable clerk.
• D) open the mail, restrictively endorse the cheques and then list each remittance on a prelist.

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Definitions:

True Probabilities

The actual likelihood of an event occurring, as opposed to estimated probabilities based on theoretical models or assumptions.

Information Processing

The process of gathering, storing, and manipulating data to produce meaningful information.

Fully Rational

Describes an economic theory assumption that individuals always make decisions that provide them with the highest amount of personal satisfaction or utility, based on full knowledge and a consistent evaluation of available information.

Behavioral Biases

Psychological tendencies that cause individuals to act in predictably irrational ways, often impacting financial and investment decisions.