Smith Manufacturing Company's Accounts Receivable Clerk Has a Friend Who

question 81

Multiple Choice

Smith Manufacturing Company's accounts receivable clerk has a friend who is also a Smith's customer.The accounts receivable clerk has issued fictitious credit memos to his friend for goods supposedly returned.The most effective procedure for preventing this activity is to:

• A)prenumber and account for all credit memorandums.
• B)require receiving reports that provide evidence of returned inventory items to support all credit memorandums before they are approved.
• C)have independent sales and accounts receivable departments.
• D)mail monthly statements to customers.

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Definitions:

Societies

Groups of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or virtual territory, typically subject to the same political authority and dominant cultural expectations.

Canadians

The people native to or citizens of Canada, a country in North America known for its multicultural population and bilingual nature, English and French being the official languages.

Flexible

Capable of being easily modified to adapt to new conditions or situations.

Mass Culture

Cultural products and activities produced for and consumed by a large number of people, often characterized by being commercialized and standardized.