Since notes receivable are negotiable, internal control procedures must be devised to protect them against fraud and theft.

Question

Quizplus · Accepted Answer

Since notes receivable can be transferred from one party to another, internal controls are necessary to prevent fraudulent or unauthorized transfers or theft. These controls may include securely storing notes receivable, restricting access to authorized personnel, and reconciling notes receivable regularly.

Since Notes Receivable Are Negotiable, Internal Control Procedures Must Be