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