When Certain Customers Made Cash Payments to Reduce Their Accounts

question 106

Multiple Choice

When certain customers made cash payments to reduce their accounts receivable,the bookkeeper embezzled the cash and wrote off the accounts as uncollectible.Which control procedure would most likely prevent this irregularity?

• A)segregation of duties
• B)accounting records
• C)accounting system
• D)access controls

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, affecting trade and economic relations between countries.

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for full adjustment to changes.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners over a specific time period, indicating the flow of capital out of a country.

Mexican Assets

Financial investments or physical properties located in Mexico, including stocks, bonds, real estate, and other forms of assets.