An Example of an Entity Level Control Would Be ________

question 118

Multiple Choice

An example of an entity level control would be ________.

• A)an entity's risk assessment process
• B)a detective control pertaining to accounts receivable
• C)a preventive control relating to an IT function
• D)a physical lock on a storage facility

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Definitions:

Net Sales

The final sales figure a company reports, after deducting returns, discounts, and compensations for damaged or missing products from its total sales.

Gross Sales

The total sales revenue of a company without deducting any sales returns, allowances, or discounts.

Sales Returns and Allowances

Transactions where customers return goods or receive discounts due to issues, reducing total sales revenue.

Contra-Revenue Accounts

Accounts that are used to record reductions in gross revenue, such as sales returns and allowances, and discounts.