When a Company Receives Customers' Checks by Mail

question 16

Multiple Choice

When a company receives customers' checks by mail:

• A)the mailroom sends all customer checks to the treasurer,who has the cashier deposit the checks in the bank.
• B)the treasurer prepares the journal entries.
• C)the mailroom employee prepares the journal entries.
• D)the cashier in the treasury department prepares the journal entries.

---

Definitions:

Proposed Investment

A prospective asset or capital outlay under consideration for its potential to generate income or appreciate in value.

Simple Rate Of Return

A calculation that measures the percentage return on an investment or project, not accounting for the complexity of interest compounding.

Cash Operating Expenses

Expenses that a company pays out in cash during an operational period, including salaries, utilities, and rent, but excluding non-cash expenses like depreciation.

Annual Depreciation

The allocation of an asset's cost over its useful life, representing how much of an asset's value has been used up during a fiscal year.