If a Design Test of Controls for Sales Is, for Example

question 29

True/False

If a design test of controls for sales is, for example, testing internal controls are working to electronically indicate approval for customer orders after they have been approved for credit, the test of control is to examine the customer order for proper approval.

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Definitions:

Sales Discounts

A promotional strategy where the seller reduces the price of products or services to attract more customers or encourage quick payment.

Sales Tax

A percentage of the selling price of goods and services, collected by sellers and remitted to the appropriate tax authority.

Liability Account

An accounting record that captures the amounts a company owes to others.

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.