Processing cash receipts under a lock-box system is an example of the control procedure of:
A)limited access.
B)proper approvals.
C)adequate records.
D)compliance monitoring.

Question

Quizplus · Accepted Answer

Under a lock-box system, the incoming cash receipts are sent directly to a bank lock-box instead of being first received by the company. This limited access control procedure minimizes the chances of cash mishandling or theft and ensures that the cash receipts are quickly processed by the bank and credited to the company's account.

Processing Cash Receipts Under a Lock-Box System Is an Example