Which of the following are internal controls relating to accounts receivable?
I. Sending monthly statements of account to customers.
II.Reviewing slow paying accounts.
III. Regular reconciliation of the debtors control account and the subsidiary ledger.
IV.Separating the functions of maintaining the accounts receivables with processing of cash receipts.
V.Allowing debtors discount for early settlement.

Question

Quizplus · Accepted Answer

I, II, III, and IV are all internal controls related to accounts receivable. Sending monthly statements helps ensure accuracy and prompts payment, reviewing slow-paying accounts helps identify potential issues early, regular reconciliation ensures the accuracy of records, and separating functions reduces the risk of errors or fraud. Allowing debtors discount for early settlement is a credit policy decision rather than an internal control.

Which of the Following Are Internal Controls Relating to Accounts