Which of the Following Would Be the Best Protection for a Company

question 60

Multiple Choice

Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable?

• A)Separate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail.
• B)Separate duties so that no employee has access to both checks from customers and currency from daily cash receipts.
• C)Have customers send payments directly to the company's depository bank.
• D)Request that customer's payment checks be made payable to the company and addressed to the treasurer.

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Definitions:

Abnormal Behavior

Actions or behaviors that are significantly deviant from what is considered normal or typical within a cultural or societal context.

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A historical period in Europe spanning roughly from the 5th to the late 15th century, characterized by feudalism, the rise of Christianity, and the lack of central government.

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A compulsive need to engage in gambling activities despite the negative effects it has on one’s life.

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A state of well-being in which an individual realizes their own abilities, can cope with normal stresses of life, can work productively, and is able to make contributions to their community.