A Control That May Be Implemented to Ensure All Sales

question 35

Multiple Choice

A control that may be implemented to ensure all sales that occur are recorded in the general ledger includes which of the following?

• A)Use of prenumbered shipping,invoice and sales documents.
• B)Use of prenumbered statements,inventory lists and credit memos.
• C)Reconciliation of invoices with customer statements.
• D)Use of pre-authorized price lists.

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Definitions:

R&D Expenditures

Funds allocated for conducting research and development with the aim of innovation and improving products or services.

Sales

The exchange of a commodity for money; the action of selling something.

Inverted-U Theory

A hypothesis suggesting that there is an optimal level of some variable (such as stress or arousal) for performance, with both too little and too much leading to lower performance.

R&D Expenditures

Funds allocated by governments, institutions, or companies towards research and development activities.