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:

Distractions

Items or events that draw attention away from the task at hand, potentially reducing productivity or focus.

Productivity

The measurement of efficiency in which goods and services are created and delivered, often gauged by the output per unit of input.

Work Sharing

An employment strategy that reduces work hours for a group of employees as an alternative to layoffs, aiming to distribute available work during downturns.

Labour Costs

Expenses related to compensating employees, including wages, salaries, benefits, and payroll taxes, significant for budgeting and financial planning.