Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable?a. Separate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail.b. Separate duties so that no employee has access to both checks from customers and currency from daily cash receipts.c. Have customers send payments directly to the company’s depository bank.d. Request that customer’s payment checks be made payable to the company and addressed to the treasurer.
Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable?a. Separate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail.b. Separate duties so that no employee has access to both checks from customers and currency from daily cash receipts.c. Have customers send payments directly to the company’s depository bank.d. Request that customer’s payment checks be made payable to the company and addressed to the treasurer.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1QY
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Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable?
a. Separate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail.
b. Separate duties so that no employee has access to both checks from customers and currency from daily cash receipts.
c. Have customers send payments directly to the company’s depository bank.
d. Request that customer’s payment checks be made payable to the company and addressed to the treasurer.
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