Which of the Following Controls Most Likely Would Be Effective

question 66

Multiple Choice

Which of the following controls most likely would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?

• A)Employees responsible for authorizing sales and bad debt write-offs are denied access to cash.
• B)Shipping documents and sales invoices are matched by an employee who does not have authority to write off bad debts.
• C)Employees involved in the credit-granting function are separated from the sales function.
• D)Subsidiary accounts receivable records are reconciled to the control account by an employee independent of the authorization of credit.

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Definitions:

Transformational Leadership Model

A leadership approach that causes change in individuals and social systems by inspiring followers to achieve extraordinary outcomes.

Contingent Reward-Based Practices

Management strategies that offer rewards or incentives based on the achievement of specific criteria or performance goals.

Authoritarian Leaders

Leadership style characterized by individual control over all decisions with little input from group members, often involving strict rules and regulations.

Assertive Risk Takers

Individuals who confidently engage in actions that involve risk, often with the belief that they can positively influence the outcome.