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4 November, 11:05

Which of the following is an effective control over accounts receivable? Multiple Choice Balances in the subsidiary accounts receivable ledger should be reconciled to the general ledger control account once a year, preferably at year-end. The billing function should be assigned to persons other than those responsible for maintaining accounts receivable subsidiary records. Responsibility for approval of the write-off of uncollectible accounts receivable should be assigned to the cashier. Only persons who handle cash receipts should be responsible for the preparation of documents that reduce accounts receivable balances.

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  1. 4 November, 12:08
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    The billing function should be assigned to persons other than those responsible for maintaining accounts receivable subsidiary records.

    Explanation:

    The first choice it's considered an effective Internal control procedure for accounts receivable.

    This is because it is not safe that the person who prepares the billing is the same who record cash receipts or any other document over the account receivables.

    This is what we call Segregation of Duties and this is an internal control determined to avoid fraud or error.
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