Which of the Following Is Not an Example of an Internal

question 34

Multiple Choice

Which of the following is not an example of an internal control for the sales process?

• A) credit committee review of credit limits on a quarterly basis
• B) approved purchase order is reconciled to invoice
• C) application control that only allows orders to be processed against existing approved customers with enough unused credit limit
• D) invoices automatically generated from order documents

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Definitions:

Expected Returns

The mean of all the likely returns for an investment or portfolio over a given period, accounting for the risk of those returns.

Portfolio

An assortment of financial assets such as equities, bonds, commodities, money, and near-money assets, encompassing both closed-end funds and exchange-traded funds (ETFs).

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Positively Correlated

A relationship between two variables in which they move in the same direction; as one increases, the other also increases.