Which of the following statements concerning electronic funds transfers is not correct?
A. Businesses sometimes receive payments from customers via EFT.
B. An EFT occurs when a customer electronically transfers funds from his or her bank account to the company’s bank account.
C. Because electronic funds transfers are deposited directly into the company’s bank account, they require additional internal control procedures.
D. To process an EFT, the accounting department merely records journal entries to debit Cash and credit Account Receivable from each customer.
Answer:C
Which of the following statements concerning electronic funds transfers is not correct?
A. Businesses sometimes receive payments from customers via EFT. B. An EFT occurs when a customer electronically transfers funds from his or her bank account to the company’s bank account. C. Because electronic funds transfers are deposited directly into the company’s bank account, they require additional internal control procedures. D. To process an EFT, the accounting department merely records journal entries to debit Cash and credit Account Receivable from each customer.