Effective internal control over accounts receivable ensures all of the following except:
A)All shipments of goods during the period are recorded.
B)The sale transaction is recorded for the correct dollar amount.
C)That cash collections from customers are promptly deposited.
D)The availability of adequate cash for conducting business operations.

Question

Quizplus · Accepted Answer

Effective internal control over accounts receivable ensures that all shipments of goods are recorded, sale transactions are recorded for the correct amount, and cash collections are promptly deposited. However, it does not directly ensure the availability of adequate cash for conducting business operations. This is a separate aspect of cash management and requires its own set of controls.

Effective Internal Control Over Accounts Receivable Ensures All of the Following