One way the risk of not collecting receivables can be managed is:
A)have all customers pay by check.
B)separate cash-handling duties from record-keeping duties.
C)separate cash-handling from the mailroom.
D)have an imprest petty cash fund.

Question

Quizplus · Accepted Answer

Separating cash-handling duties from record-keeping duties can help reduce the risk of not collecting receivables. This ensures that the same person is not responsible for both handling cash and keeping track of the accounts receivable. This reduces the risk of errors or fraud and increases the effectiveness of the collection process. Having customers pay by check may not be feasible or practical for all businesses, and separating cash-handling from the mailroom or having an imprest petty cash fund are not directly related to managing the risk of not collecting receivables.

One Way the Risk of Not Collecting Receivables Can Be