With Regard to Customer Checks Received by Mail,which Statement Is

question 149

Multiple Choice

With regard to customer checks received by mail,which statement is TRUE?

• A)The debit to Cash by the accounting department should equal the amount deposited in the bank by the mailroom employee.
• B)The customers' Accounts Receivable accounts should be adjusted by the cashier in the treasury department for the payments received.
• C)The controller compares the customers' checks to the remittance advices sent from the mailroom.
• D)The accounting department debits Cash and credits Accounts Receivable.The cashier in the treasurer's department deposits the checks in the bank.

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Definitions:

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Double Coincidence of Wants

A condition in barter economies where two parties each hold an item the other wants, making it possible for an exchange to occur without a common medium of exchange.

Barter Situation

A trade system where goods or services are exchanged directly for other goods or services without the use of money as a medium of exchange.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.