Which of the Following Controls Would Best Prevent the Lapping

question 12

Multiple Choice

Which of the following controls would best prevent the lapping of accounts receivable?

• A) Segregate duties so that the clerk responsible for recording in the accounts receivable subsidiary ledger has no access to the general ledger.
• B) Request that customers review their monthly statements and report any unrecorded cash payments.
• C) Require customers to send payments directly to the company's bank.
• D) Request that customers make the check payable to the company.

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Definitions:

Marketing Mix

The strategic combination of the four Ps—product, price, place, and promotion—used to market a product or service effectively.

Market Share

The percentage of an industry's sales that a particular company controls.

Ancillary Sales

Additional revenue generated from goods or services that complement a company's main business operations.

Customer Loyalty

The tendency of consumers to continue buying from the same brand or company, often due to satisfaction, convenience, or perceived value.