Effective internal control over accounts receivable ensures:
A)That credit is only extended to customers that meet the company's credit standards.
B)That an approved factor is used when the company sells its accounts receivable.
C)There is an accurate accounting for cash receipts,cash disbursements,and cash balances.
D)The availability of adequate cash for conducting business operations.

Question

Quizplus · Accepted Answer

Effective internal control over accounts receivable ensures that credit is only extended to customers that meet the company's credit standards. This helps to reduce the risk of bad debt and ensures that the company is able to collect the amount owed on time. While the other options may also be important components of internal control, they do not specifically pertain to accounts receivable.

Effective Internal Control Over Accounts Receivable Ensures