Which of the Following Are the Three Functions That Should

question 48

Multiple Choice

Which of the following are the three functions that should be performed by separate departments or individuals?

• A) Authorization, purchasing, and custody of assets
• B) Record keeping, validation, and classifying
• C) Record keeping, validation, and authorization
• D) Authorization, record keeping, and custody of assets

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Definitions:

Bad Debt Expense

An expense recorded to account for receivables that are not expected to be collected, reflecting credit losses in the financial statements.

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued, indicative of the effectiveness of a company's credit and collection policies.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.