Which of the Following Are Internal Controls Relating to Accounts

question 35

Multiple Choice

Which of the following are internal controls relating to accounts receivable?
I. Sending monthly statements of account to customers.
II.Reviewing slow paying accounts.
III. Regular reconciliation of the debtors control account and the subsidiary ledger.
IV.Separating the functions of maintaining the accounts receivables with processing of cash receipts.
V.Allowing debtors discount for early settlement.

• A) I III and V only.
• B) I, II and IV only
• C) I, II, III, and IV only
• D) I, II, III, IV and V.

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Definitions:

Product Costs

The direct and indirect costs incurred to produce a product, including materials, labor, and overhead.

Work in Process Inventory

Goods partially completed but not yet ready for sale, representing a stage between raw materials and finished goods in the manufacturing process.

Finished Goods Account

An account used to track the value of inventory that has been completed and is ready for sale.

Product Cost Information

Data about the total cost incurred to produce a product, including materials, labor, and overhead.