The Use of a Lockbox System Enhances Controls Over Cash

question 62

Multiple Choice

The use of a lockbox system enhances controls over cash receipts because the post office box is directly controlled by the:

• A) mailroom staff.
• B) internal audit department.
• C) treasurer.
• D) chief financial officer.
• E) company's bank.

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Definitions:

Tangible Property

Physical assets that can be seen, touched, and measured, such as land, buildings, and equipment.

Life Tenant

An individual who has the right to use or occupy a property during their lifetime but does not own the property.

Waste

The act of using or expending resources carelessly, extravagantly, or to no purpose.

Fee Simple Absolute

The highest and most complete form of land ownership, granting the owner unlimited rights to the property.