Internal Controls May Be Preventive or Detective

question 24

Multiple Choice

Internal controls may be preventive or detective.Which of the following controls is preventive?

• A)Requiring two persons to open mail containing payments.
• B)Reconciling the accounts receivable subsidiary file with the control account.
• C)Using batch totals.
• D)Preparing bank reconciliations.

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Definitions:

Personal Debts

Financial obligations for which an individual is personally responsible, as opposed to debts of a corporation or business entity.

Landscape Gardeners

Landscape gardeners specialize in designing, creating, and maintaining outdoor spaces, including gardens, parks, and other landscaped areas, blending artistic design with horticultural expertise.

Partnership Liability

The legal responsibility that partners in a business partnership have for the debts and obligations of the partnership.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit and loss distribution among partners in a business partnership.