A critical element of internal control over collections of accounts receivables is:

Question

Quizplus · Accepted Answer

The separation of cash-handling and cash-accounting duties is a critical element of internal control over collections of accounts receivables. This helps prevent theft or errors in recording cash collections. Depositing cash on a daily basis, setting up a petty cash account, and using a cheque writing machine may all be important control measures, but they are not as crucial as the separation of duties.

A Critical Element of Internal Control Over Collections of Accounts