Which of the Following Internal Control Procedures Will Most Likely

question 94

Multiple Choice

Which of the following internal control procedures will most likely prevent the concealment of a cash shortage resulting from the improper write-off of a trade account receivable?

• A)Write-offs must be approved by a responsible officer after review of credit department recommendations and supporting evidence.
• B)Write-offs must be supported by an aging schedule showing that only receivables overdue several months have been written off.
• C)Write-offs must be approved by the cashier who is in a position to know if the accounts receivable have,in fact,been collected.
• D)Write-offs must be authorized by company field sales employees who are in a position to determine the financial standing of the customers.

---

Definitions:

Series RC

Refers to an electrical circuit in which a resistor and a capacitor are connected in a series configuration, affecting the circuit's overall impedance and phase angle.

Total Impedance

The combined resistance and reactance in an electrical circuit, measuring the circuit's opposition to alternating current.

Capacitive Reactance

The resistance that a capacitor offers to the changes in voltage in an AC circuit.

Series RC

A circuit configuration consisting of a resistor (R) and a capacitor (C) connected in series, often used in filters and timing applications.