As Part of the Procedure to Properly Control Cash Payments

question 58

Multiple Choice

As part of the procedure to properly control cash payments received in the mail, after the mailroom employee opens the cash receipts, the remittance advices go to the:

• A)Controller.
• B)accounting department.
• C)Treasurer.
• D)bank.

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Definitions:

Straight-line Method

A method of calculating depreciation of an asset, which spreads the cost evenly over its useful life.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life, important in calculating depreciation.