Correct Response: D. The best practice to improve the business's internal cash flow control would be to arrange a separation of personnel duties. One person should accept the cash, confirm the amount, and create a receipt for the customer. A second person should recount the cash received and record the cash in the accounts receivable ledger. A single person should not have control over the entire cash-handling process. Dictating to customers what type of payments will be accepted could cause inconvenience and is unprofessional (A). It is essential that businesses have security procedures to protect customers' credit card payments, but this is independent from controlling cash flow (B). Reminding staff of the business code of ethics is essential, but it is not the best practice for properly securing received cash payments (C).
