nvoices, and the AR department posts to the customers’ accounts. B The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are performed by
nvoices, and the AR department posts to the customers’ accounts. B The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are performed by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which, if any, of the following situations represent improper segregation of functions?
A. The billing department prepares the customers ‘invoices, and the AR department posts to the
customers’ accounts.
B The sales department approves sales credit memos as the result of product returns, and subsequent
adjustments to the customer accounts are performed by the AR department.
C The shipping department ships goods that have been retrieved from stock by warehouse personnel.
D. The general accounting department posts to the general ledger
vouchers that are prepared by the billing department.
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