Which of the Following Internal Control Procedures Will Most Likely

question 94

Multiple Choice

Which of the following internal control procedures will most likely prevent the concealment of a cash shortage resulting from the improper write-off of a trade account receivable?

• A)Write-offs must be approved by a responsible officer after review of credit department recommendations and supporting evidence.
• B)Write-offs must be supported by an aging schedule showing that only receivables overdue several months have been written off.
• C)Write-offs must be approved by the cashier who is in a position to know if the accounts receivable have,in fact,been collected.
• D)Write-offs must be authorized by company field sales employees who are in a position to determine the financial standing of the customers.

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Definitions:

Power Relationships

The dynamics of control, influence, and authority among individuals, groups, or institutions, often examined within political, social, or economic contexts.

Wage Earners

Individuals who receive a regular payment in exchange for their labor or services, usually calculated by the hour, day, or week.

Factory System

A method of manufacturing using machinery and division of labor, leading to mass production but also significant changes in society and the economy.

Machinery Use

Refers to the employment of machines to perform work or tasks, often used to increase efficiency, productivity, and precision in industries and agriculture.