Segregation of Duties Controls Dictates That the Collection and Recording

question 50

Multiple Choice

Segregation of duties controls dictates that the collection and recording functions be kept separate from each other.However,the accounts receivable department needs to know when customers pay their invoices.What is a solution to this potential internal control problem?

• A)Establish a lockbox arrangement with a bank.
• B)Have customers send a remittance advice with their payment.
• C)Have mailroom personnel prepare a remittance list which can be forwarded to accounts receivable.
• D)all of the above

---

Definitions:

Prior Knowledge

The information and understanding that one already possesses before encountering new information or experiences.

Sensory Register

The component of memory that is responsible for holding information taken in through the senses for a very short period of time.

Sensory Organs

Specialized organs or structures that detect external or internal stimuli, enabling perception of sight, sound, smell, taste, and touch.

Information-Processing Theorists

Scholars who study how humans think, perceive, memorize, and learn, comparing the mind to a computer that processes incoming information.