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:

Operations

Flexible, reversible mental manipulations of objects, in which objects can be mentally transformed and then returned to their original states.

Precausal Thinking

A type of reasoning typical in early childhood where logic is not yet developed, leading to conclusions that don't follow logically from their premises.

Transductive Reasoning

A type of reasoning, especially noted in young children, where individuals make inferences from one specific event to another, often without understanding the underlying causal relationships.

Three Mountains Task

A cognitive development test used to assess a child’s ability to recognize different perspectives and viewpoints.