Which of the Following Tests of Controls Most Likely Would

question 7

Multiple Choice

Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed?

• A)Scan the sales journal for sequential and unusual entries.
• B)Examine shipping documents for matching sales invoices.
• C)Compare the accounts receivable ledger to daily sales summaries.
• D)Inspect unused sales invoices for consecutive prenumbering.

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Definitions:

Demand Decreases

A reduction in the quantity of a good that consumers are willing and able to buy at each possible price.

Equilibrium Quantity

The amount of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand Increases

A situation in which the quantity of a product or service that consumers are willing and able to buy at a specific price rises.

Price Restrictions

Regulations or limits placed on the price level for goods and services, often by a government to control inflation or protect consumers.