Which of the Following Is Used by Many Companies to Separate

question 34

Multiple Choice

Which of the following is used by many companies to separate cash duties and establish stronger control over cash receipts?

• A) An encryption system
• B) An imprest system
• C) A lock-box system
• D) A firewall system

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Definitions:

Cash Records

Documentation and tracking of all cash transactions, including receipts and expenditures, crucial for accurate financial reporting.

Accounts Receivable

Financial obligations of customers to a business for received goods or services awaiting payment.

Sales Uncollected

Refers to revenue from sales for which payment has not yet been received; also known as accounts receivable.

Liquidity

The ability of a company or individual to quickly convert assets into cash without significant loss in value, essential for meeting short-term obligations.