Which of the Following Internal Control Activities Most Likely Would

question 12

Multiple Choice

Which of the following internal control activities most likely would ensure that all billed sales are correctly posted to the accounts receivable ledger?

• A)Daily sales summaries are compared to daily postings to the accounts receivable ledger.
• B)Each sales invoice is supported by a prenumbered shipping document.
• C)The accounts receivable ledger is reconciled daily to the control account in the general ledger.
• D)Each shipment on credit is supported by a prenumbered sales invoice.

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Definitions:

Competitive Equilibrium

A market state where supply equals demand, and no economic forces are compelling either price or quantity to change.

Oligopolistic

Referring to a market structure characterized by a small number of firms that have significant control over prices and market share.

Market

Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.

Lerner Index

An economic measure of a firm's market power, calculated as the difference between price and marginal cost relative to price.