Which of the following is an example of exercising internal control over receivables?

Question

Quizplus · Accepted Answer

Separating cash collection and credit allowance duties is an example of exercising internal control over receivables as it helps prevent fraud and errors in recording receivables, which can lead to financial losses for the company. By separating these duties, it ensures that one person does not have too much control over the entire process, reducing the likelihood of fraudulent activity. The other options given are important strategies for managing receivables but do not directly relate to exercising internal control.

Which of the Following Is an Example of Exercising Internal