Reference no: EM132574868
Problem 1: The purpose of tracing shipping documents to prenumbered sales invoices would be to provide evidence that:
Option 1: All prenumbered sales invoices were accounted for.
Option 2: Shipments to customers were properly invoiced.
Option 3: Goods billed to customers were shipped
Option 4: No duplicate shipments or billings occurred.
Problem 2: The authorization of sales returns requires that certain individuals within the company be assigned the authority for all of the following, except:
Option 1: Develop Sales Return Policies
Option 2: Authorize Sales Returns
Option 3: Approve Credit Memos
Option 4: Record the Credit Memos
Problem 3: In following proper segregation of duties, those who handle cash should not be granted any of the following authorities EXCEPT:
Option 1: Access to the company's accounting records
Option 2: Information systems programming
Option 3: Inventory management duties
Option 4: Authorization to reconcile the company bank account
Problem 4: The custody responsibilities for cash receipts includes all of the following, except:
Option 1: Handling receipts of currency and checks
Option 2: Opening mail
Option 3: Updating accounts receivable records
Option 4: Preparing a list of collections
Problem 5: Which of the following is NOT part of an administrative process?
Option 1: The purchase of marketable securities
Option 2: The sale of stock
Option 3: The sale of bonds
Option 4: The write-off of bad debts