Which of the following is used by many companies to separate cash duties and establish stronger control over cash receipts?
A) An encryption system
B) An imprest system
C) A lock-box system
D) A firewall system

Question

Quizplus · Accepted Answer

A lock-box system is used by many companies to separate cash duties and establish stronger control over cash receipts. In this system, customers send payments directly to a post office box controlled by the company's bank. The bank then deposits the payments directly into the company's account and provides detailed information about the payments received. This eliminates the need for the company to handle and process incoming payments, reducing the risk of fraud or theft. The company maintains control over the account and can reconcile the deposits with customer invoices or other records.

The other options (A, B, and D) are not relevant to the question, as they do not relate to separating cash duties or establishing control over cash receipts.

Which of the Following Is Used by Many Companies to Separate