Which of the Following Key Controls Helps Ensure That Sales

question 18

Multiple Choice

Which of the following key controls helps ensure that sales transactions are classified to the correct account?

• A)Computer checks for gaps in shipping document numbers.
• B)Invoices are prepared using prices and terms from the customer master file.
• C)Management reviews sales reports regularly for reasonableness.
• D)Posting is done automatically to the sales account based on periodic totals.

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Definitions:

Minimum Price

Is the lowest price at which a product or service can be sold, often set by law or regulation to protect producers or consumers.

Producer

An individual, company, or entity that creates goods or provides services.

Total Cost

The entirety of expenses, fixed and variable, involved in the production of services or goods.

Market Price

The existing value at which an asset or service may be sold or acquired in a trading environment.