Which of the Following Procedures Most Likely Would Not Be

question 272

Multiple Choice

Which of the following procedures most likely would not be an internal control procedure 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:

Total Output

The complete quantity of goods or services produced by an entity within a specific period.

Loanable Funds

Financial resources available for borrowing, which constitute the supply in the loan markets.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on savings, indicating the cost of borrowing or the reward for saving.

Equilibrium Interest Rate

The equilibrium interest rate is the rate at which the demand for funds equals the supply of funds in the financial markets, balancing savings and investments.