Question

Immediately upon receipt of cash, a responsible employee should

A. Record the amount in the cash receipts journal.
B. Prepare a listing of remittances.
C. Update the subsidiary accounts receivable records.
D. Prepare a deposit slip in triplicate

Answer 1

B. Prepare a listing of remittances

Step-by-step explanation:

The employee receives a cash receipt only when some expense is incurred on behalf of the company. This clearly validates that as soon as the receipt is received the listing of remittances shall be prepared.

This listing basically signifies that all the expenses shall be paid off, as incurred on behalf of company, or any kind of bill is pending for payment of goods acquisition, then it shall be paid off, and entered in the list where all remittances has to be made.