To Achieve Good Internal Control Over Accounts Receivable, It Is

question 45

True/False

To achieve good internal control over accounts receivable, it is important to separate the recording of accounts receivable transactions and the collection of cash from customers.

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Definitions:

Sight Draft

A financial document demanding immediate payment upon presentation to the drawee, commonly used in international trade to control the transfer of goods.

Buyer's Bank

The financial institution that processes payments on behalf of a buyer, especially in international trade transactions.

Agreed-on Amount

A specific sum of money that has been mutually consented to by the parties involved in a transaction or contract.

International Purchasing Offices

Entities established by companies in foreign countries to facilitate the sourcing and procurement of goods and services.