Question

A clerk receives checks and customer receipts in the mail. He endorses the checks, fills out the deposit slip, and posts the checks to the cash receipts events data. The clerk is exercising which functions?

Answer 1

A clerk processes checks for deposit by endorsing them, preparing a deposit slip, and recording the transactions in the company's financial records. These actions are essential in managing the cash flow and maintaining accurate financial data.

Step-by-step explanation:

The clerk in this scenario is performing various functions that are key to the banking operations. Firstly, by endorsing the checks, the clerk legitimizes them for deposit and transfer of funds. This is an essential step in check processing, which ensures that the check can be legally and safely deposited into the bank's account. Subsequently, the clerk is responsible for preparing a deposit slip, which itemizes the checks and cash being deposited. This document is necessary for the bank to process the deposit and update the customer's account balance.

Lastly, posting the checks to the cash receipts events data means the clerk records these transactions in the company's financial records. This action serves as an internal control measure, contributing to the accuracy of the company's financial reporting. In summary, the functions carried out by the clerk include check endorsement, deposit slip preparation, and bookkeeping.