Which of the Following Internal Control Activities Most Likely Would

question 42

Multiple Choice

Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?

• A) Each sales invoice is supported by a prenumbered shipping document.
• B) The accounts receivable ledger is reconciled daily to the control account in the general ledger.
• C) Each shipment on credit is supported by a prenumbered sales invoice.
• D) The accounts payable ledger is reconciled weekly to the control account in the general ledger.
• E) Daily sales summaries are compared to daily postings to the accounts receivable ledger.

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Definitions:

Noncash Assets

Assets that are not in the form of cash or not easily convertible to cash, often including property, plant, and equipment.

Forthcoming Contribution

Expected or promised financial donations or investments that are pledged to be given at a future date.

Cash Account

A type of account where all transactions involve the immediate payment of cash.

Partnership Loan

A type of financing where a lender provides funds to a partnership, which is typically used for business operations or expansion.