A Person Who Reviews the Operating and Accounting Control Procedures

question 46

Multiple Choice

A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as a(n)

• A) bookkeeper.
• B) accountant.
• C) information processor.
• D) internal auditor.

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Definitions:

Aging Schedule

A table that shows the breakdown of accounts receivable into categories based on the length of time they have been outstanding.

Credit Policy

A credit policy is the set of guidelines that a company follows to determine the creditworthiness of customers and the terms of credit to offer.

Cash Balances

The amount of cash or cash equivalents that a company or an individual holds.

Compensating Balances

Minimum balances that a business must maintain in its bank account as part of a borrowing arrangement with the bank.