ich of the following controls is most likely to help ensure that all credit revenue transactions of an entity are recorded? Multiple Choice The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. The billing department supervisor sends a copy of each approved sales order to the credit department for comparison to the custome authorized credit limit and current account balance. O The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable account each month. A The accounting department supervisor controls the mailing of monthly statements to customers and investigates any customers. differences repo

ich of the following controls is most likely to help ensure that all credit revenue transactions of an entity are recorded? Multiple Choice The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. The billing department supervisor sends a copy of each approved sales order to the credit department for comparison to the custome authorized credit limit and current account balance. O The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable account each month. A The accounting department supervisor controls the mailing of monthly statements to customers and investigates any customers. differences repo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following can be appropriately included in an Internal Control Questionnaire for Revenue/Receipt Cycle, except *A. Is the credit department independent of the sales department?B. Are debit or credit memos independently checked against sales invoice data?C. Are accounts receivable periodically reviewed and aged?D. Does the cashier compare the official receipt, deposit slip, and cash receipts journal?E. None of them
Each of the below describes a procedure consistent with a strong system of internal control except… Question 7 options: The customer order department determines when a sale has occurred and should be recorded. The accounts payable department agrees purchase requisitions, purchase orders, receiving reports, and invoices prior to payment. Quantities ordered are excluded from the receiving department copy of a purchase order so receiving personnel count and inspect merchandise received. The use of remittance advices for customers' payments on accounts receivable received in the mail.
Which of the following is the best reason for prenumbering in numerical sequence documents such as sales orders, shipping documents, and sales invoices?a. Enables company personnel to determine the accuracy of each document.b. Enables personnel to determine the proper period recording of sales revenue and receivables.c. Enables personnel to check the numerical sequence for missing documents and unrecorded transactions.d. Enables personnel to determine the validity of recorded transactions.
You are tasked to perform cut-off procedures for expenses and its related payable. In testing the completeness/cut-off assertion, what document would you most likely inspect? A. Vendor invoice register 15 days before and 15 days after report date. B. Cash disbursement journal 15 days before and 15 days after report date. C. Accounts payabie subsidiary ledger. D. Purchase journal 15 days before and 15 days after report date.
Discuss whether the following situations are improper segregation functions. Support your answer with reasonable grounds. A. The purchasing department prepares the customer’s invoice and the accounts receivable department sends it to the customer’s account. B. The sales department approves the sales credit memo upon product return, and payment on the customer’s account is made by the accounts receivable department. C. The shipping department sends the goods that have been picked up from the warehouse by the warehouse staff. D. The general accounting department posts to the general ledger account after receiving the journal voucher provided by the billing department E. The human resources department appoints employees and also pays employees ’salaries