Question

customer failed to include her account number on her check, and the accounts receivable clerk credited her payment to a different customer with the same last name. Which control could have been used to most effectively to prevent this error? A) Closed-loop verification B) Duplicate values check C) Validity check D) Reconciliation of a batch control total

Answer 1

Closed-loop verification is the most effective control for preventing payments from being credited to the wrong account when an account number is missing. It confirms transaction details before processing, ensuring accuracy and completeness.

Step-by-step explanation:

The control that could have been used most effectively to prevent a customer's payment from being credited to the wrong account due to a missing account number is A) Closed-loop verification.

This process ensures that the information entered into a system is checked for accuracy and completeness.

Closed-loop verification would involve confirming the details of the transaction, such as the customer's name and account number, before the payment is processed.

This way, even if a customer fails to include their account number on a check, the system would request additional identification information to accurately credit the payment to the correct account.