The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to
a. supervise the accounts receivable department
b. limit access to credit memoranda
c. prenumber and sequence check all credit memoranda
d. require management approval for all credit memoranda
D
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A mortgage payable is a written agreement specifying that if the borrower does not repay a debt, the lender has the right to take over the property to satisfy the debt
a. True b. False Indicate whether the statement is true or false
The purpose of a social responsibility audit is to:
A) develop positive-image building activities B) develop contingency plans in case of negative events or negative publicity C) make sure the organization has clear-cut ethical guidelines for employees to follow and that the company acts to serve the interests of all publics D) uncover any unethical behavior and to develop rules and policies for enhancing social responsibility
Transactions are recorded in the general journal in:
a. Alphabetical order. b. Account number order. c. Chronological order. d. Financial statement order.
Briefly discuss "actual cause" and "proximate cause," and explain the test for determining whether each of these necessary elements of negligence are present in a given case.
What will be an ideal response?