Which of the Following Are Key Control Procedures for the Revenue

question 39

Multiple Choice

Which of the following are key control procedures for the revenue business process?

• A)segregation of transaction trails
• B)authorization procedures
• C)documented duties
• D)independent transaction trails
• E)physical controls that limit access to assets
• F)both A and B
• G)both C and D
• H)Both B and E

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Definitions:

Quality Of Income Ratio

A metric assessing the proportion of income that has been realized or converted into cash, providing insight into the company's cash flow quality.

Receivables

Amounts due to a company for goods or services that have been provided but not yet paid for by the customers.

Accrue Expenses

The recording of expenses that have been incurred but not yet paid, reflecting obligations on the balance sheet.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred taxes, and changes in working capital to calculate cash flow from operating activities.