Which of the Following Control Activities May Prevent the Failure

question 48

Multiple Choice

Which of the following control activities may prevent the failure to bill customers for some shipments?

• A)Each shipment should be supported by a prenumbered sales invoice that is accounted for.
• B)Each sales order should be approved by authorized personnel.
• C)Sales journal entries should be reconciled to daily sales summaries.
• D)Each sales invoice should be supported by a shipping document.

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Definitions:

Organizational Principles

Fundamental beliefs, concepts, or rules that help govern the behavior, decision-making, and actions of an organization, guiding its culture and operations.

Business Ethics

The study of proper business policies and practices regarding potentially controversial subjects such as corporate governance, insider trading, bribery, discrimination, and corporate social responsibility.

Profitable New Markets

Emerging or untapped segments of the economy where businesses can enter and establish themselves to generate significant profit.

Existing Equipment

Machinery or tools that are currently owned or in use by an organization or individual.