Effective Internal Control Includes All the Following Steps Except

question 131

Multiple Choice

Effective internal control includes all the following steps except:

• A)The Customer Order department prepares a sales order upon receipt of an order.
• B)The Billing department compares what was shipped with what was ordered and prepares and mails a sales invoice.
• C)The Accounting department receives the checks and the mailroom listing of checks received and prepares the daily bank deposit.
• D)The Accounting department reconciles the bank statement with accounting records.

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Definitions:

Accounts Receivable

Unpaid customer dues to an enterprise for availed services or acquired goods.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions and changes in working capital.

Income Statement

A financial report showing a company's revenues, expenses, and profit over a specific period.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's profits.