To Provide an Adequate Separation of Functions in the Accounts

question 122

Multiple Choice

To provide an adequate separation of functions in the accounts receivable business process,maintaining the subsidiary accounts receivable ledger should be the responsibility of

• A) billing.
• B) accounts receivable.
• C) cash receipts.
• D) general ledger.

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total opportunity costs.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or limit the possibility of new competitors entering an industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the market to stabilize at a point where supply equals demand.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.