Below Are the Six Internal Control Objectives

question 18

Short Answer

Below are the six internal control objectives.
A) Validity
B) Completeness
C) Authorization
D) Accuracy
E) Classification
F) Proper period cutoff
For each of the following control procedures, identify the internal control objective that applies and place the correct letter in the space provided.
____ 1. Match shipping documents to sales invoices before recording the transaction in the sales journal.
____ 2. Ensure that the sales invoices are recorded in the correct month.
____ 3. The sales manager must approve any discounts taken after the discount period.
____ 4. Compare the quantity shipped per the shipping documents to the quantity billed per the sales invoice, check prices to approved price lists, and recalculate extensions and totals before the recording the sale.
____ 5. Account for numerical sequence of pre-numbered shipping documents.

• A) Validity
• B) Completeness
• C) Authorization
• D) Accuracy
• E) Classification
• F) Proper period cutoff
• For each of the following control procedures, identify the internal control objective that applies and place the correct letter in the space provided.
• ____ 1. Match shipping documents to sales invoices before recording the transaction in the sales journal.
• ____ 2. Ensure that the sales invoices are recorded in the correct month.
• ____ 3. The sales manager must approve any discounts taken after the discount period.
• ____ 4. Compare the quantity shipped per the shipping documents to the quantity billed per the sales invoice, check prices to approved price lists, and recalculate extensions and totals before the recording the sale.
• ____ 5. Account for numerical sequence of pre-numbered shipping documents.

Understand the impact of tax rates on dividend policy theories.

Learn the conditions under which the dividend irrelevance theory applies.

Differentiate between various dividend policy theories and their implications for stock price.

Understand the clientele effect and how it influences dividend policy.

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Definitions:

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Pet Raccoon

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Accident

An unexpected event, typically one causing damage or harm, that occurs without one's foresight or intent.