Which of the Following Is a Preventative Control

question 12

Multiple Choice

Which of the following is a preventative control?

• A) Taking periodic inventory.
• B) Leaving recently arrived inventory in a customer area prior to accepting it.
• C) Periodically checking customer balances versus account write-offs.
• D) Keeping inventory in a locked room that only a shift leader has the keys for.

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Definitions:

Retained Earnings

Profits that a company has elected to keep at the end of a fiscal period instead of distributing to shareholders as dividends, often used for reinvestment.

Incremental Adjustment

A modification made to accounts or values in small stages, often used for accounting adjustments or to refine estimates.

Investee

An entity in which an investor holds an interest, and typically has significant influence over, but does not control.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, encompassing a broad range of investment strategies and vehicles.