A Critical Element of Internal Control Over Collections of Accounts

question 86

Multiple Choice

A critical element of internal control over collections of accounts receivables is:

• A) depositing the cash from the cash register on a daily basis
• B) setting up a petty cash account
• C) using a cheque writing machine
• D) the separation of cash-handling and cash-accounting duties

---

Definitions:

Merchandise

Goods that are available for sale in retail or wholesale.

Off-price Retailers

Retail stores that sell high-quality goods at lower prices than traditional retail prices, often through the purchase of overstock items or direct negotiations.

Retail Store Managers

Individuals responsible for overseeing the daily operations of retail stores, including staff management, sales, and inventory control.

Assortment

The selection of merchandise a retailer carries.