Proper authorization of write-offs of uncollectible accounts should be approved in which of the following departments?

Question

Quizplus · Accepted Answer

Choice "D" is correct. The treasurer does not perform duties that are incompatible with authorizing write ffs since he or she is usually not involved with sales transactions or recordkeeping. Choice "A" is incorrect. Recording accounts receivable and authorizing write-offs would constitute an improper segregation of duties. Choice "B" is incorrect. Granting credit and authorizing write-offs represents an improper segregation of duties since non-existent customers could have credit authorized and then have their accounts written off. Choice "C" is incorrect. The accounts payable department is typically involved in the expenditure cycle, not the revenue cycle.

Proper Authorization of Write-Offs of Uncollectible Accounts Should Be Approved