Separation of Cash-Handling and Cash-Accounting Duties Is a Critical Element

question 88

True/False

Separation of cash-handling and cash-accounting duties is a critical element of internal control over receivables.

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Definitions:

Third-Party Check

A check that is written by one person to another but is cashed or deposited by a third party.

Paid In Full

A term indicating that a debt or obligation has been completely settled and no balance remains due.

Uncorrected

Refers to something that has not been amended, fixed, or rectified.

Single Line

A straight line that has no bends or curves.