Effective Internal Control Over Accounts Receivable Ensures All of the Following

question 175

Multiple Choice

Effective internal control over accounts receivable ensures all of the following except:

• A)All shipments of goods during the period are recorded.
• B)The sale transaction is recorded for the correct dollar amount.
• C)That cash collections from customers are promptly deposited.
• D)The availability of adequate cash for conducting business operations.

---

Definitions:

Adult

An individual who has reached the age of majority, legally recognized as capable of managing personal affairs and responsible for their actions.

Infant

A child in the early stages of life, but in legal terms, an individual who is not yet of legal age and therefore does not have full legal capacity.

Contract

A legally binding agreement between two or more parties, enforceable by law.

Corporate Bodies

Corporate bodies are legal entities recognized by law as capable of rights and duties, separate from the individuals who form or manage them, typically referring to businesses or organizations.