When an Entity Receives Mail Receipts, It Is Preferable to Have

question 6

Multiple Choice

When an entity receives mail receipts, it is preferable to have at least two clerks responsible for opening the mail. This control

• A) ensures both clerks are punctual.
• B) reduces the risk of cash receipts received in the mail being misappropriated.
• C) ensures receipts are processed to the appropriate general ledger account.
• D) ensures all cheques received are accompanied by a remittance advice.

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Definitions:

Goods

Physical items that satisfy human wants or needs, which can be bought, sold, or traded.

Maximizing Utility

The process or goal of obtaining the highest level of satisfaction or benefit from the consumption of goods and services, given constraints like income.

Utility

A measure of satisfaction, usefulness, or value that an individual or society derives from a good or service.

Consuming

The act of using up goods or services either by purchasing or utilizing them.