Which of the Following Control Weaknesses Could Result in Problems

question 6

Multiple Choice

Which of the following control weaknesses could result in problems with collectability of accounts receivable?

• A)Unauthorized individuals can establish or change credit limits.
• B)Matching shipping documents to sales records is done weekly.
• C)When there is one error in a batch of transactions,the whole batch is rejected.
• D)Cash receipts are matched to the customer accounts rather than against specific invoices.

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Definitions:

Consumption Bundle

A set of goods or services that a consumer chooses to purchase at a given time.

Good 1

Typically a term used in economics to represent a specific commodity or product in theoretical discussions.

Budget Constraint

A limit on the consumption choices of individuals or entities based on their income and the prices of goods and services, representing all possible combinations of goods and services that can be purchased.

Utility Function

A mathematical representation that ranks individuals' preferences over a set of goods and services to represent satisfaction levels.