One of the Key Internal Controls to Prevent Invalid (Fictitious)

question 3

Multiple Choice

One of the key internal controls to prevent invalid (fictitious) transactions in the sales and collection cycle is:

• A) to include a list of customer numbers in the computer files.
• B) to account for the integrity of the numerical sequence of sales orders.
• C) to include the sales price list of all products in the computer files.
• D) to have the bank reconciliation done by someone who is independent of the treasury function.

Apply the concept of rational expressions in simplification.

Solve and simplify equations involving exponents and radicals.

Understand the legal principles governing agency relationships, including the creation, rights, duties, and authority of agents and principals.

Identify the types of authority agents can hold and the implications of each for contractual and legal relationships.

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Definitions:

Process Costing System

An accounting system used when products are identical and it's impractical to track individual costs, totaling costs for a period and spreading them evenly across all units produced.

Journal Entry

A record that keeps the financial transactions of a business in chronological order as they occur.

Process Costing System

An accounting methodology used in industries where production is continuous, assigning costs to units of product based on the process they go through.

Raw Materials Inventory

The stock of basic materials and components that are required in the manufacturing process before they are transformed into finished goods.