To Ensure That All Customer Remittances Received by the Bank

question 71

True/False

To ensure that all customer remittances received by the bank are posted when a lockbox is being used,control procedures should require that all remittance advices be sent by the bank to the client.

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Definitions:

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Minimum Legal Capital

The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Premium Capital

Capital that is obtained or raised at a value above its nominal or face value, often reflecting the additional amount paid by investors over the par value of securities or shares.