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:

Long Run

A period of time in which all factors of production and costs are variable, and firms can enter or exit the industry.

Market Entry

The process by which a new competitor enters an existing market to offer goods or services.

Profits Maximize

The process of adjusting production and operations to achieve the highest possible profit margins.

Restaurant Industry

A sector of the economy that is concerned with the preparation, sale, and service of food and beverages to customers.