The Accounts Receivable Clerk Destroys All Invoices for Sales Made

question 102

Multiple Choice

The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers.The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud?

• A)Send monthly statements to all customers with balances owed.
• B)Reconcile sales invoices in the billing department to the total debits to accounts receivable subsidiary ledgers.
• C)Sequentially prenumber all invoices and prepare a sequence check at the end of each day.
• D)Reconcile the accounts receivable control account to the accounts receivable subsidiary ledger.

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Definitions:

Advertisers

Entities that promote goods, services, or ideas through various media to persuade potential customers to respond or buy.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, reflecting a preference based on perception of the brand's value.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected when the price changes.