Which of the Following Would Be a Step in an Internal

question 13

Multiple Choice

Which of the following would be a step in an internal control program?

• A)Obtain an aged trial balance of the accounts receivable.
• B)Prepare and send confirmations on a sample of customers' accounts receivable.
• C)Assess the control risk for sales and collections.
• D)Read sales contracts for evidence of customers' rights of return or price allowance terms.

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Definitions:

Organizing

The process of arranging resources and tasks to achieve objectives efficiently and effectively.

Normal Curve

A theoretical distribution of scores where the mean, median, and mode all share the same value and an equal percentage of scores fall on either side of the distribution. Also called a bell-shaped curve based on the visual form this type of distribution takes when graphed.

Smooth Curve

A type of curve in graphical representations that is continuously differentiable and does not have any sharp angles or breaks.

Frequency Polygon

A graphical representation of the distribution of numerical data, where a continuous line connects points representing the frequency of scores within intervals.