Which of the following is a control objective over sales? a. None of the options b. Compare goods dispatch note with sales order c. Only invoice customer for goods that were sent d. Inspect signature on sales invoice confirming it has been checked to the order

Which of the following is a control objective over sales? a. None of the options b. Compare goods dispatch note with sales order c. Only invoice customer for goods that were sent d. Inspect signature on sales invoice confirming it has been checked to the order

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 8MC: Which one of the following documents is not needed to process a payment to a vendor? A. vendor...

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A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? A. No changes would be made since the person paying the bills is different from the person ordering the inventory. B. The person in accounts payable should generate the purchase order. C. The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. D. The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.
Which one of the following documents is not needed to process a payment to a vendor? A. vendor invoice B. packing slip C. check request D. purchase order
Which of the following is a control objective over sales? O a. None of the options O b. Compare goods dispatch note with sales order O . Only invoice customer for goods that were sent O d. Inspect signature on sales invoice confirming it has been checked to the order
Which of the following would not be a control in a sales system? a. Agreeing details from the sales order when preparing the goods to be dispatched to the customer b. Batch totals required when inputting sales invoices onto the system c. Approval of credit limits for new customers from a manager before being allowed credit d. The sales clerk alone deciding whether to give discounts or not to customers without approval
Which of the following statements concerning internal control procedures for merchandise sales is not correct? a.Accounting for a sale begins with the receipt of a purchase order or some similar document from a customer. b.Shipping and billing documents are prepared based on the order document. c.A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. d.The order document is not necessary for the buyer to be obligated to accept and pay for the ordered goods.
Which of the following is a test of control relating to purchases? a. None of the options b. Give samples to customers before they order c.accept goods into warehouse without any checking. d. Observe goods being received to verify goods are quality checked on
1. What would a credit manager do if a sales order received caused a customer to exceed its credit limit? 2. What happens after the shipping department verifies that the quantities and descriptions of goods prepared for shipment are consistent with the sales order?
1. Which of the following is a control procedure to address the threat of purchasing goods or services at inflated prices? A. Requiring multiple approvals for purchases B. Performing regular physical inventory counts C. Conducting vendor audits D. Implementing encryption for sensitive data 2. Which of the following is not a common error in the expenditure cycle? A. Recording the wrong purchase order number B. Recording the wrong vendor name for goods received C. Recording the wrong quantity of goods received D. Recording the wrong price for goods received 3. The primary objective of internal controls in the expenditure cycle is to: A. Ensure the accuracy and completeness of financial transactions B. Streamline the procurement process C. Minimize the cost of purchases D. Increase the speed of payment processing
Please answer multichoice question in photo. There may be more than one answer
Upon reciept of requisition, the stores manager initiates a three part purchase order. To copies go to the vendor and one copy stays in the stores file. Upon reciept of the goods, the stores manager matches the purchase order with the invoice and forwards them to accounts payable for payments. which of the following statement best describe the internal control over purchasing? a. adequate the internal control exists. b. Inadequate separation of duties exists. c. Inadequate control over accounts payable exists. d. Inadequate control over the requisition pricess exists.
The accounting system will not post a sales transaction to the sales journal withouta valid bill of lading number. This control is most relevant to which transactionrelated objective for sales?(1) Accuracy (3) Completeness(2) Occurrence (4) Posting and summarization
Which of the following are examples of preventive controls? Select all that apply. O account coding on purchase orders is checked by the computer using a table of valid account numbers computerized accounting system will not allow a sale to be processed if a customer has exceeded its credit limit O quarterly review of credit balances in accounts receivable for reasonableness O sales manager reviews daily shipments, total sales, and sales per unit shipped O sales invoices are priced automatically using a master pricing file