When a Company Receives Customers' Checks by Mail

question 41

Multiple Choice

When a company receives customers' checks by mail:

• A)all incoming mail containing checks from customers should be opened by the mailroom.
• B)the mailroom sends all customer checks to the accounting department.
• C)the remittance advices go to the treasurer for deposit.
• D)the bank deposit is prepared by the mailroom.

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Definitions:

AASB 121

Refers to the Australian Accounting Standards Board provision dealing with the effects of changes in foreign exchange rates.

Exchange Differences

Variance arising from translating foreign currency transactions or foreign operations into the reporting currency.

Presentation Currency

The form of money used to express the financial records of a company.

Net Profit

The amount of income that remains after subtracting all expenses, taxes, and costs from total revenue.