Having One Person Post Entries to Accounts Receivable Subsidiary Ledger

question 38

Multiple Choice

Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of

• A) inadequate internal control.
• B) duplication of effort.
• C) external verification.
• D) segregation of duties.

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Definitions:

Process Costing

A method of costing used for homogenous products, where it calculates the cost of each process or stage of production.

FIFO Method

A method of inventory valuation where the oldest items are sold first, standing for "First In, First Out."

Conversion Costs

The combined costs of direct labor and manufacturing overhead used to convert raw materials into finished products.

FIFO Method

A method of inventory valuation that assumes the first items placed in inventory are the first sold, hence, the cost of the oldest inventory is used to determine the cost of goods sold.