Question

For the cash receipts process, the control plan using turnaround documents helps to achieve which of the following pairs of control goals?

A) Accuracy and timeliness
B) Efficiency and scalability
C) Flexibility and adaptability
D) Transparency and innovation

Answer 1

The control plan using turnaround documents in the cash receipts process aims to enhance accuracy and timeliness by ensuring that key transaction information is quickly processed with reduced errors.

Step-by-step explanation:

The control plan using turnaround documents in the cash receipts process is primarily focused on ensuring the accuracy and timeliness of transactions. A turnaround document is an output that is sent out and then returned by the customer or another internal department to confirm a transaction. This document helps in minimizing errors since the returning document has already been partially completed, contains key information for the transaction, and is familiar to the person who processes it, thereby reducing the likelihood of input mistakes. The quick return of the document also promotes timeliness, ensuring that cash receipts are promptly recorded and processed.