Who Generally Is Responsible for Providing the Accounting Department with Information

question 72

Multiple Choice

Who generally is responsible for providing the accounting department with information about financing and investing activities to create the appropriate general ledger journal entries?

• A) budget department
• B) controller
• C) treasurer
• D) chief executive officer

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Definitions:

Lockbox System

A service provided by banks to accelerate collection of payments by having those payments sent to a special post office box rather than to the company.

Treasury Bills

Represent short-term government securities issued at a discount from the par value and mature without interest payments.

Collection Time

The typical period it takes for a company to receive payments due from its clients.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special address (PO Box) where customers send their payments.