Who Is Generally Responsible for Opening Receipts When a Company

question 32

Multiple Choice

Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

• A) company personnel
• B) temporary employees in the town where the lockbox is located
• C) bank employees
• D) company controller

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold or distributed.

Direct Labour

Workforce directly involved in manufacturing goods or providing services, whose costs are directly attributed to products or services.

Merchandise Inventory

The goods available for sale to customers in retail or wholesale businesses, valued at lower of cost or market value on the balance sheet.