The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?
a. prenumber and sequence check all invoices
b. reconcile the accounts receivable control to the accounts receivable subsidiary ledger
c. prepare monthly customer statements
d. reconcile total sales on account to the debits in the accounts receivable subsidiary ledger
C
You might also like to view...
A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash fund, is known as the ________.
A) control system B) voucher system C) balanced system D) imprest system
Which of the following statements is FALSE with regard to holding costs?
a. The holding cost per unit per period is expressed as a percentage of the purchase price (P). b. The holding cost per unit per period is called the carrying rate. c. The holding cost per unit per period is called the holding rate. d. The holding cost per unit per period is expressed as a percentage of ordering costs.
____ processing includes capturing input data, making calculations, storing information in a database, and producing various forms of output such as receipts and purchase orders.
A. Order B. Inventory C. Transaction D. Internet
Which of the following is an advantage of a public bond issue over private placement?
A) It can be tailored to a particular situation. B) It is less costly to issue. C) It does not need to be registered with the SEC. D) It is freely tradable on the bond market.