Which of the Following Procedures Performed for the Billing Function

question 53

Multiple Choice

Which of the following procedures performed for the billing function may provide evidence that the accounts receivable subsidiary ledger is in agreement with the accounts receivable control account?

• A) Making sure that all shipments have been billed.
• B) Making sure that no shipment has been billed more than twice.
• C) Making sure that each shipment is billed at the correct amount.
• D) Making sure that each shipment is billed to the proper customer.

---

Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life, often used in calculating depreciation.

Indirect Method

A method used in the preparation of cash flow statements, where net income is adjusted for non-cash transactions, deferrals, and accruals to calculate net cash from operating activities.

Operating Activities

Activities directly related to the production and delivery of goods and services, which are central to a company's operations and cash flow.

Residual Value

The estimated amount that an asset is expected to be worth at the end of its useful life.