A Monthly Statement Sent to Customers Serves a Control Purpose

question 22

Multiple Choice

A monthly statement sent to customers serves a control purpose by

• A)providing an opportunity for customers to verify the balance owed and activity on the account.
• B)triggering the process to record a customer payment.
• C)summarizing invoices and amounts due for customers.
• D)reminding customers of the balance due and due date.

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Definitions:

Original Issuance

The first time that securities, such as stocks or bonds, are offered for sale to the public or private investors.

Securities

Financial instruments that represent ownership positions in corporations, creditor relationships with corporations or governmental bodies, or rights to ownership as represented by an option.

Capital Structure

Refers to the way a company finances its assets through a combination of debt, equity, and other securities.

Debt

An amount of money borrowed by one party from another, often used by businesses and governments to finance operations and projects.