Final answer:
The most appropriate step in internal control for handling customer checks by mail is to prepare a duplicate listing of checks received. This step ensures accuracy in recording received payments and prevents the mishandling of funds which is a fundamental aspect of both personal and business finance management.
Step-by-step explanation:
The best practice in sound internal control regarding the handling of checks received from customers by mail is option c. Prepare a duplicate listing of checks received. This process, often called 'making a remittance list', is crucial as it serves as a record that can be used to verify the proper recording of payments received in the cash receipts journal and ensures that each check is accounted for if it is later deposited in a bank. The duplicate list should then be used by another employee to verify entries against the list and confirm that all checks are deposited as recorded.
Addressing how this relates to personal finance management, keeping accurate records, like balancing your checkbook regularly, helps in managing your money effectively and preventing issues such as overdraft, which occurs when you write a check for an amount greater than the balance in your checking account, resulting in potential fees.
Businesses and individuals deposit their money in banks for safety and convenience, with a checking account being essential for day-to-day transactions. Other financial institutions like credit unions and savings and loan banks (S and L’s) provide similar financial services tailored to specific needs of their members or customers.