Controls Designed to Reduce the Risk of Omissions, Duplications, Incorrect

question 14

Multiple Choice

Controls designed to reduce the risk of omissions, duplications, incorrect pricing, and other types of errors in the billing process include all of the following except:

• A) comparison of control totals for shipping documents with corresponding totals for sales invoices.
• B) computer matching of sales invoice information with purchase order information.
• C) computer matching of sales invoice information with sales order and shipping information.
• D) computer-programmed checks on the mathematical accuracy of sales invoices.
• E) computer matching of sales prices with an authorized price list and sales order prices in preparing the sales invoices.

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Definitions:

Long-Run Equilibrium

A state in which market supply equals market demand and all firms in a perfectly competitive market earn zero economic profits.

Elastic Demand

A situation in which demand for a product or service is sensitive to price changes, meaning a small change in price can lead to a significant change in quantity demanded.

Revenue Generation

The process of creating income for a business or organization through various means such as sales, services, or investments.

Lower Fares

Reduced charges for services, particularly in transportation, such as airfares or bus tickets, making travel more affordable.