Internal Controls May Be Preventive or Detective

question 24

Multiple Choice

Internal controls may be preventive or detective.Which of the following controls is preventive?

• A)Requiring two persons to open mail containing payments.
• B)Reconciling the accounts receivable subsidiary file with the control account.
• C)Using batch totals.
• D)Preparing bank reconciliations.

---

Definitions:

Total Revenue

The sum of money a company earns from selling products or offering services over a specific time frame.

Patent

A form of intellectual property protection that grants the patent holder exclusive rights to use, make, sell, and distribute the patented invention or process for a certain period of time.

Barrier To Entry

Factors that prevent or hinder companies from entering a particular market or industry.

Marginal Cost

The outlay for producing a supplementary unit of a product.