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:

Mutually Exclusive Projects

Investment initiatives where committing to one option precludes the selection of an alternative.

Analytical Method

A systematic approach in research and investigation to solve problems or interpret data.

Discounted Payback

A capital budgeting method that calculates the time required to recoup the cost of an investment, considering the time value of money.

Discount Rate

This interest rate is employed within the scope of DCF to ascertain the present valuation of future cash streams.