Which of the Following Is the Best Example of the Control

question 87

Multiple Choice

Which of the following is the best example of the control objective in the revenue cycle that all transactions are recorded accurately?

• A) Sales are recorded at the invoice price expected to be collected from customers.
• B) Sales orders have sequential numbering.
• C) Recorded sales transactions are evidenced by valid invoices and shipping documents.
• D) Credits to customer accounts are classified as liabilities.

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Definitions:

Sociological

Pertaining to sociology, the study of social behavior, society, patterns of social relationships, social interaction, and culture.

Spurious

Lacking authenticity or validity in essence or origin; not genuine.

Association

Exists between two variables if the value of one variable changes with the value of the other.

Independent

Being self-governing or not influenced by external control, often describing a state of autonomy or self-reliance.