An Example of Good Internal Control Over Accounts Receivable Is

question 87

Multiple Choice

An example of good internal control over Accounts Receivable is:

• A)the employee who handles the daily cash receipts also records Accounts Receivable transactions.
• B)the employee who opens the mail is also in charge of recording Accounts Receivable.
• C)there are separate employees for cash-handling and cash-accounting duties.
• D)All of the above are examples of good internal controls.

---

Definitions:

Law Enforcement

The activity of ensuring compliance with the laws of a jurisdiction, typically conducted by police and other agencies.

Competition Act

A legal framework aiming to prevent anti-competitive practices in the marketplace, promote fair competition, and protect consumer interests.

Quiet Possession

A condition that the seller, or anyone claiming through the seller, will not interfere with the buyer’s use and enjoyment of the property.

Merchantable Quality

A condition implying that the goods are of a quality suitable for sale to a customer under the sale of goods legislation.