Tracing Copies of Computer-Generated Sales Invoices to Copies of the Corresponding

question 9

Multiple Choice

Tracing copies of computer-generated sales invoices to copies of the corresponding computer-generated shipping documents provides evidence that:

• A)Shipments to customers were properly billed.
• B)Entries in the accounts receivable subsidiary ledger were for sales actually shipped.
• C)Sales billed to customers were actually shipped.
• D)No duplicate shipments to customers were made.

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Definitions:

Net Cash Flow

The total amount of money being transferred in and out of a business, especially as it relates to operational, investing, and financing activities.

Subsidiary Acquired

A business entity whose control is obtained by another entity (parent company) through the acquisition of its majority voting stock.

Financing Cash Flows

Cash flows associated with the raising of capital and repayment of borrowings, including issuing and repurchasing shares, and payment of dividends.