Which of the Following Controls Would Best Prevent the Lapping

question 12

Multiple Choice

Which of the following controls would best prevent the lapping of accounts receivable?

• A) Segregate duties so that the clerk responsible for recording in the accounts receivable subsidiary ledger has no access to the general ledger.
• B) Request that customers review their monthly statements and report any unrecorded cash payments.
• C) Require customers to send payments directly to the company's bank.
• D) Request that customers make the check payable to the company.

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Definitions:

Paid Today

A financial transaction or settlement completed on the current date.

Paid

The state of having been transferred money in exchange for goods or services.

Economic Value

A measure of the worth of goods or services based on their ability to fulfill needs or desires.

Interest Rate

The interest rate is the percentage of a loan amount that a lender charges as interest to the borrower, typically expressed as an annual percentage of the principal.