Multiple Choice Questions: 1. Which of the following functions is not compatible with managing the accounts receivable
Question:
Multiple Choice Questions:
1. Which of the following functions is not compatible with managing the accounts receivable ledger?
a. Opening the mail.
b. Approving the write-off of bad debt.
c. Depositing customer payments into the company bank account.
d. All of the above.
e. Only a and c.
2. The primary control in the purchasing side of the finance cycle is
a. Ensuring that accounting maintains control of company checks.
b. Having the chief accountant review and approve all payments.
c. Having the treasury function make payments based on documentation from other departments.
d. Requiring at least one corporate executive to review payments before they are made.
3. Lockboxes are used for
a. Storing petty cash.
b. Storing the combined receipts of multiple cash registers.
c. Storing the payment collection.
d. None of the above.
4. For ideal control over cash registers, there should be
a. Two employees assigned to each register.
b. One employee assigned to each register.
c. At least one employee assigned to each register.
d. None of the above.
5. In the classical approach to systems development, the developer
a. Produces a custom blueprint for the desired system
b. Uses an industry-standard system blueprint.
c. Starts with an industry-standard system blueprint and then makes adaptations.
d. All of the above.
6. The turnkey approach to systems development is
a. More expensive that the classical approach.
b. Less expensive than the classical approach.
c. Costs about the same as the classical approach.
d. More or less expensive that the classical approach, depending on the systems life cycle.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Lockboxes
Lockbox banking is a service provided by banks to companies for the receipt of payment from customers. Under the service, the payments made by customers are directed to a special post office box instead of going to the company. The bank goes to the...
Step by Step Answer:
Forensic Accounting and Fraud Examination
ISBN: 978-0078136665
2nd edition
Authors: William Hopwood, george young, Jay Leiner