Which of the Following Is a Proper Control for the Detection

question 61

Multiple Choice

Which of the following is a proper control for the detection of unusual sales transactions recorded in the general ledger?

• A)Electronic authorization prior to posting.
• B)Use of sequentially numbered sales documents.
• C)Random statements to customers.
• D)Review of transactions by upper management or the board.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of a product.

Direct Labor

The cost of wages for employees directly involved in the production or manufacturing of goods.

Cost of Goods Sold

The total cost associated with making or acquiring any goods sold during a specific period, including materials, labor, and overhead.

Materials

The physical components or substances used in the production of goods.