Which of the Following Is an Example of a Preventive

question 91

Multiple Choice

Which of the following is an example of a preventive control?

• A) approving customer credit prior to approving a sales order
• B) reconciling the bank statement to the cash control account
• C) counting inventory on hand and comparing counts to the perpetual inventory records
• D) maintaining frequent backup records to prevent loss of data

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Definitions:

Equilibrium Price

The price at which the quantity demanded of a good equals the quantity supplied.

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period of time.

Shortage Occurs

A market condition where the demand for a product exceeds its supply at a given price, leading to a situation where not all consumer demand can be met.

Motorcycle Producers

Companies or entities that manufacture motorcycles, focusing on aspects such as design, production, and marketing.