The last step in the revenue cycle is cash collections. The accounts receivable department must...
80.2K
Verified Solution
Link Copied!
Question
Accounting
The last step in the revenue cycle is cash collections. The accounts receivable department must know when customers pay their invoices, yet segregation of duty controls dictate that the collection and recording functions be kept separate from each other. What is a solution to this potential internal control problem?
a. have mailroom personnel prepare a remittance list which can be forwarded to accounts receivable
b. have customers send a remittance advice with their payment
c. establish a lockbox arrangement with a bank
d. all of the above
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
