Which of the Following Is Consistent with Effective Internal Control

question 35

Multiple Choice

Which of the following is consistent with effective internal control over sales transactions?

• A)The accounting department prepares a shipping report authorizing the shipment of goods.
• B)The accounting department accounts for all receiving reports.
• C)The billing department accounts for all shipping documents.
• D)The accounts payable department annually approves the extension of credit to customers.

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Definitions:

Rapid City Flood

A catastrophic flood event that occurred in Rapid City, South Dakota, in 1972 due to heavy rainfall.

Flash Flood

A local and sudden flood of short duration, such as that which may follow a brief but heavy rainfall.

Global Warming

Increasing global atmospheric and oceanic temperatures as measured or inferred from some point in the past to the present.

Lithosphere

The rigid outer layer of the earth, including the crust and upper mantle, which is divided into tectonic plates.