Which of the Following Is the Last Step in the Daily

question 131

Multiple Choice

Which of the following is the last step in the daily control over cash receipts by mail?

• A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit.
• B) A mailroom clerk opens the mail and sends the remittance advices to the accounting department.
• C) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to cash from the accounting department.
• D) The accounting department prepares journal entries to cash and the customers' accounts.

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Definitions:

Money Supply

The total quantity of currency and other liquid instruments circulating in an economy at a particular time.

Banking System

The network of institutions that provide financial services, including the management, distribution, and creation of money among individuals, businesses, and governments.

Reserve Requirement

This is the minimum amount of funds that a bank must hold in reserve against deposits made by customers, a critical tool in monetary policy.

Money Supply

The total amount of money available in an economy at a specific time, including cash and various types of deposits.