Which Control Does Not Help to Ensure That Accurate Records

question 100

Multiple Choice

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

• A)reconcile accounts receivable control to accounts receivable subsidiary
• B)authorize credit
• C)segregate custody of inventory from record keeping
• D)segregate record keeping duties of general ledger from accounts receivable

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Definitions:

Departmentalization

The method of dividing an organization into distinct departments or units, each specializing in a particular function or area of operation.

Machine Bureaucracy

A highly structured, formal organization model, optimized for efficiency and characterized by a clear hierarchy, division of labor, and a focus on routine, repetitive tasks.

Simple Structure

An organizational design characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

Adhocracy

An organizational structure characterized by flexibility, employee empowerment, and an emphasis on innovation and problem-solving rather than hierarchy and strict procedures.