Which of the following are examples of preventive controls? Select all that apply.O account coding on purchase orders is checked by the computer using a table of validaccount numberscomputerized accounting system will not allow a sale to be processed if a customer hasexceeded its credit limitO quarterly review of credit balances in accounts receivable for reasonablenessO sales manager reviews daily shipments, total sales, and sales per unit shippedO sales invoices are priced automatically using a master pricing file

Preventive controls are the controls placed in the system prior to the occurrence of any threat to…

Answered: Which of the following are examples of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 6MC: A company is trying to set up proper internal controls for their accounts payable/inventory...

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Similar questions

A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? A. No changes would be made since the person paying the bills is different from the person ordering the inventory. B. The person in accounts payable should generate the purchase order. C. The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. D. The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.
There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.
Which one of the following documents is not needed to process a payment to a vendor? A. vendor invoice B. packing slip C. check request D. purchase order

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