Joe Costello Handles Cash Receipts from Customers and Also Has

question 12

Multiple Choice

Joe Costello handles cash receipts from customers and also has responsibility for issuing credit memoranda, writing off uncollectible accounts, and maintaining the accounts receivable records. When customers pay their accounts, Davis occasionally issues a credit memorandum and steals the cash received from the customer. This fraud should come to light if an employee other than Costello:

• A) Reconciles the bank statement to the accounting records.
• B) Reconciles the accounts receivable subsidiary ledger to the accounts receivable controlling account.
• C) Investigates weekly all accounts written off as uncollectible.
• D) Reconciles credit memoranda for sales returns to returned merchandise accepted by the receiving department.

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Definitions:

Diverse Workforce

A workplace that includes employees with a wide range of characteristics and experiences, such as various ethnicities, genders, ages, and abilities.

Passive Communication

A communication style where individuals avoid direct expression of their needs, desires, or feelings, often leading to misunderstandings.

Disregard Needs

Ignoring or neglecting the necessities or requirements of someone or something.

Communication "Do's"

Recommended practices that enhance effective communication, including clarity, empathy, and active listening.