Indicate Whether Each of the Following Statements About Internal Control

question 150

True/False

Indicate whether each of the following statements about internal control and ethics is true or false.
-The use of safety deposit boxes is a common feature of an effective internal control system

---

Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue previously recognized and a refund or credit issued to the customer.

Accounts Receivable

Receivables from clients or customers for goods sold or services performed by a business, awaiting payment.

Contra-Revenue

Accounts on the income statement that are deducted from gross revenue to arrive at net revenue, including sales returns, allowances, and discounts.

Discount Period

The timeframe during which a payment can be made at a reduced price or with a deduction from the full invoice amount.