Which of the Following Controls Most Likely Would Be Effective

question 66

Multiple Choice

Which of the following controls most likely would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?

• A)Employees responsible for authorizing sales and bad debt write-offs are denied access to cash.
• B)Shipping documents and sales invoices are matched by an employee who does not have authority to write off bad debts.
• C)Employees involved in the credit-granting function are separated from the sales function.
• D)Subsidiary accounts receivable records are reconciled to the control account by an employee independent of the authorization of credit.

---

Definitions:

Water Spills

Accidental releases of water onto surfaces, potentially causing damage or requiring clean-up.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing patterns of thought, emotion, and behavior.

Freud

Refers to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Libido

A term used in psychoanalytic theory to denote the sexual or life drive, often manifested as sexual energy.