To Maintain Adequate Separation of Functions,accounts Receivable Should Not Have

question 105

Multiple Choice

To maintain adequate separation of functions,accounts receivable should not have access to

• A) cash received from customers.
• B) checks received from customers.
• C) invoices and credit memos.
• D) Answers A and B are both correct.

---

Definitions:

Natural Monopolies

A market structure where a single firm can supply a product or service more efficiently than any potential competitor, often due to high infrastructure costs or other barriers to entry.

Regulatory Commissions

Government agencies responsible for enforcing specific regulations to protect public interest in various sectors.

Contain Costs

Strategies or measures implemented to prevent expenses from rising or to reduce them.

Natural Monopolies

Occur in industries where high infrastructure costs and other barriers to entry effectively prevent competition, with utility companies often cited as examples.