A Clerk Receives Checks and Customer Receipts in the Mail

question 42

Multiple Choice

A clerk receives checks and customer receipts in the mail. He endorses the checks, fills out the deposit slip, and posts the checks to the cash receipts events data. The clerk is exercising which functions?

• A) recording and executing events
• B) authorizing and executing events
• C) recording and authorizing events
• D) safeguarding of resources and authorizing events

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Definitions:

Short-term Securities

Financial instruments, such as bonds or Treasury bills, that mature or are redeemable within a short period, typically less than one year.

Long-term Securities

Financial instruments that have a maturity period exceeding one year and include bonds, debentures, and other investment vehicles.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Reserve Requirement

A regulation set by central banks that determines the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend.