Which of the Following Is the Last Step in the Daily

question 131

Multiple Choice

Which of the following is the last step in the daily control over cash receipts by mail?

• A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit.
• B) A mailroom clerk opens the mail and sends the remittance advices to the accounting department.
• C) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to cash from the accounting department.
• D) The accounting department prepares journal entries to cash and the customers' accounts.

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Definitions:

Corporation Liability

Legal and financial obligations a corporation owes to others, which can involve debts, lawsuits, or other claims against the business.

Restricted Retained Earnings

Portion of retained earnings that is not available for distribution as dividends to shareholders, often because of legal or contractual constraints.

Preferred Stock Dividends

Dividends that are paid out to holders of a company's preferred stock before any dividends are paid to common stockholders.

Common Stock Dividends Distributable

A liability account representing the amount of dividends declared by a corporation on common stock that have not yet been paid to stockholders.