Which of the Following Controls Is Most Likely to Help

question 21

Multiple Choice

Which of the following controls is most likely to help ensure that all credit sales transactions are recorded?

• A)The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances.
• B)The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly.
• C)The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers.
• D)The billing department supervisor matches pre-numbered shipping documents with entries in the sales journal.

---

Definitions:

Eligible Dividends

Designated dividends that are entitled to a reduced tax rate in certain jurisdictions, generally paid out of the earnings of a corporation already taxed at the corporate level.

Operating Cash Flow

Cash generated from a company's regular business operations, indicating its ability to generate sufficient revenues.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, indicating its liquidity, financial health, and operational efficiency.

Creditors

Individuals, businesses, or entities to whom money is owed by debtors, typically due to the provision of goods, services, or loans.