Proper authorization procedures in the revenue/receipt cycle usually provide for approval of write-offs by an employee in which of the following departments?Select one:a.Treasurerb.Billingc.Accounts receivabled.Sales
Question
Proper authorization procedures in the revenue/receipt cycle usually provide for approval of write-offs by an employee in which of the following departments?Select one:a.Treasurerb.Billingc.Accounts receivabled.Sales
Solution
The correct answer is a. Treasurer.
Here's why:
a. Treasurer: The treasurer is typically responsible for the company's liquidity, finances, and financial risk. They would have the authority to approve write-offs as they directly impact the company's finances.
b. Billing: While the billing department does handle invoicing and can identify when a customer may not pay, they typically do not have the authority to approve write-offs.
c. Accounts receivable: The accounts receivable department is responsible for collecting payments from customers. They can identify when a debt may be uncollectible and suggest a write-off, but the final approval usually comes from a higher level, such as the treasurer.
d. Sales: The sales department is responsible for making sales, not for financial decisions like approving write-offs. Their
Similar Questions
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