As a Part of the Internal Control Over Cash Receipts

question 118

True/False

As a part of the internal control over cash receipts by mail,the mailroom sends both the customer checks and the remittance advices to the accounting department.

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Definitions:

Identifiable Net Assets

The assets and liabilities of a company that can be separately identified and valued during a merger or acquisition process.

Issued Capital

refers to the total value of a company's shares that have been sold and are held by shareholders.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the company.

Investment Elimination Entry

An accounting entry made in the process of consolidating financial statements to remove the effects of intercompany investments and avoid double counting.