A Basic Procedure of Internal Control Over Cash Receipts Is

question 126

True/False

A basic procedure of internal control over cash receipts is that the deposit of the cash and the recording of the receipts into the journal should be separated.

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Definitions:

Letter Of Credit

A written statement by a bank that money will be paid, provided conditions specified in the letter are met.

Factored Inventory Loan

A type of financing where a company borrows money against the value of its inventory, which is often controlled or managed by the lender.

Line Of Credit

A financial arrangement between a lender and a borrower that allows the borrower to draw funds up to a predefined limit as needed.

Operating Cycle

The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.