Which of the Following Procedures Most Likely Would Not Be

question 29

Multiple Choice

Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process?

• A)Comparing control totals for shipping documents with corresponding totals for sales invoices.
• B)Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
• C)Matching shipping documents with approved sales orders before invoice preparation.
• D)Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.

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Definitions:

Discount Rate

For the purpose of discounted cash flow analysis, this rate of interest is key in determining the existing value of forthcoming cash flows.

Operating Costs

Expenses related to the day-to-day functions of a business, excluding direct materials and direct labor costs.

Donut Maker

A kitchen appliance or tool specifically designed for making donuts.

Simple Rate of Return

A calculation that measures the profitability of an investment as a percentage of the original investment, ignoring the time value of money and other factors like cash flows over time.