Which of the Following Procedures Most Likely Would Not Be

question 309

Multiple Choice

Which of the following procedures most likely would not be an internal control designed to reduce the risk of errors in the billing process?

• A) Comparing control totals for shipping documents with corresponding totals for sales invoices.
• B) Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
• C) Matching shipping documents with approved sales orders before invoice preparation.
• D) Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.

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Definitions:

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.

Corporate Bond

A debt security issued by a corporation to raise funds, promising to pay back the principal along with interest at a specified rate and schedule.

Yield To Maturity

The total return anticipated on a bond if it is held until its expiration date.

Par Value

The nominal face value of a bond or stock as stated by the issuer, often used to determine interest payments.