Which of the Following Control Procedures May Prevent the Failure

question 24

Multiple Choice

Which of the following control procedures may prevent the failure to bill customers for some shipments?

• A)Each shipment should be supported by a prenumbered sales invoice that is accounted for.
• B)Each sales order should be approved by authorized personnel.
• C)Sales journal entries should be reconciled to daily sales summaries.
• D)Each sales invoice should be supported by a shipping document.

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Definitions:

Financial Reporting

The method of generating reports that reveal the financial condition of an organization to its management, investors, and governmental authorities.

Top Executives

are the highest-ranking employees in a company or organization, responsible for making major corporate decisions.

Autocratic Control

Refers to a management style where decision-making powers are centralized in the hands of one individual, with little to no input from subordinates.

Organizations

Structured groups of individuals working together to achieve shared goals through a systematic arrangement of resources, information, and activities.