Which of the following statements concerning internal control procedures for merchandise sales is not correct? a.Accounting for a sale begins with the receipt of a purchase order or some similar document from a customer. b.Shipping and billing documents are prepared based on the order document. c.A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. d.The order document is not necessary for the buyer to be obligated to accept and pay for the ordered goods.

Q: The accounting system will not post a sales transaction to the sales journal withouta valid bill of…

A: Sales Journal: Sales journal is one form of special journal book, which records all the sales…

Q: Which one of the following statements best describes the purpose of a goods despatched note? A It is…

A: The goods dispatch note is prepared by seller, so as to keep the record of goods being dispatched.

Q: Which function should the billing department NOT perform? a. record the sales in the sales journal…

A: Accounting Information System: The system which helps to gather, store and process the accounting…

Q: .   c.   completeness of receivables.   d.  collectibility of the invoices.

A: The four qualities of a confirmation are as follows: Receipt. Responses can be written or spoken.…

Q: Which of the following is a control objective over sales? a. None of the options b. Compare goods…

A: Control Objective:- These are the statements in which it has been stated that how risk is going to…

Q: For good internal control, the purchasing department should not be responsible for... Select one:…

A: Internal Control Internal controls are the mechanisms, rules, and procedures a company should need…

Q: Describe the flow of data in the purchasing process that is initiated when the purchasing…

A: Purchasing process refers to the process of procurement of goods or inventory. It starts with the…

Q: Before a voucher for the purchase of merchandise is approved for payment, supporting documents…

A:

Q: How could an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate…

A: Credit memo is generally issued by a seller to the customer which reduces the amount of account…

Q: Good internal controls in the revenue cycle should ensure all of the following except Select one: a.…

A: Introduction: Revenue: Sales called as Revenue to the business. Revenue is generated on selling…

Q: The functions of and documents generated by which of the below departments determine when a…

A: Lets understand the basics. In organization, there are various department which are inter connected…

Q: What internal control procedure(s) would provide protection against the following threats?  a.…

A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: t happens after the shipping department verifies that the quantities and descriptions of goods…

A: The sale order may be defined as the order which is generated by the seller of the goods to the…

Q: When will a credit check approval most likely require specific authorization by the credit…

A: Answer:   Option b.

Q: An internal control questionnaire indicates that an approved receiving report is required to…

A: Solution: An internal control questionnaire indicates that an approved receiving report is required…

Q: which of these substantive procedures is not used to obtain evidence about contingencies?a. Scanning…

A: Contingencies are the future expectation of losses which can happen in the organisation. Auditor…

Q: In response to the six primary physical control weaknesses that have been identified, make…

A: Physical control weaknesses: It is the  failure in the implementation or effectiveness of  physical…

Q: One internal control that companies often have is an official “approved vendor” list for purchases.…

A: The approved vendor list (AVL) can be referred to as the list containing the information of the…

Q: Which of the following audit procedures probably would provide the most reliable evidence related to…

A:

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: Which of the following is a test of control relating to purchases? a. None of the options b. Give…

A: Test of controls refers to the audit procedure followed by the auditors while conducting an audit of…

Q: Which of the following is a control objective over sales? a. Only invoice customer for goods that…

A: Business means the professional or economic activity organized and controlled by an individual or by…

Q: If a customer purchases merchandise on credit and return the defective merchandise before payment,…

A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…

Q: When the store manager receives a requisition note, he issues three copies of purchase order. Two…

A: Internal control: Internal control is a procedure used by a company's board of directors,…

Q: Which of the following functions is not included in the typical expenditure cycle involving goods?…

A: Expenditure cycle refers to specific period related to acquisition of and payment of goods and…

Q: he internal control questionnaire for purchases and accounts payable includes the following…

A: Assertions are qualities that must be verified in order to guarantee that financial reports and…

Q: nvoices, and the AR department posts to the customers’ accounts. B The sales department approves…

A:

Q: Why does billing receive a copy of the sales order when the order is approved but does not bill…

A:

Q: The internal control questionnaire for purchases and accounts payable includes the following…

A: Internal control is very important for every business organisation. It helps in achievement of…

Q: hould be on basis of blind copy of purchase order provided not by the packing slip. The inventory…

A: The recommendations are given as,

Q: The following are key controls over the purchasing and disbursement cycle except: A. Proper…

A: The purchasing  cycle involve various controls such as receiving the goods and invoice on timely…

Q: Describe how prenumbered shipping papers and sales invoices may be effective controls for avoiding…

A: Prenumbering: It refers to the technique of giving numerical identifiers to documents that may be…

Q: Why would Commodore’s auditor insist that Rob document any sales booked under the book-and-hold…

A: An auditor is someone who verifies the accuracy of recorded commercial transactions. Auditors are…

Q: The billing department prepares the customers' invoices and records the sale in the sales journal,…

A: The segregation of functions is referred to as the distribution of the work to different…

Q: sales where the customer is billed before delivery of the goods

A: First option is wrong because there is no such condition to recognize revenue before delivery of…

Q: In the expenditure cycle, the control procedure of comparing inwards goods documents to vendor…

A: Solution : Correct answer are               -failure to take advantage of discounts for prompt…

Q: Which of the following is the best reason for prenumbering in numerical sequence documents such as…

A: Prenumbering of documents like shipping documents, sales invoices, and sales order means providing a…

Q: Sales orders are written by sales people who have no access to the goods, which are released by…

A: Delegation of authority: It is the organizational process of allocation of tasks to subordinates…

Q: All of the following are documents used for inventory control except Oa. a receiving report. Ob. a…

A: There are various documents that works as evidence of a transaction.

Q: All allowances to customers for returned or defective merchandise should be supported by serially…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: What is a walkthrough of a sales transaction? How can the walkthrough work complement the use of an…

A: Internal control- It is a process of assuring to achieve organizational's objectives by doing…

Q: A client erroneously recorded a large purchase twice. Which of the following internal accounting…

A: Internal control measures are those ways and measures which helps in achievement of objectives of…

Q: Which of the following is not an example of safeguarding inventory? a. physical devices such as…

A: From the given options, option (b) is the correct answer:   Explanation:   Returning inventory…

Q: Which of the following is not generally an internal control activity? a.Physically counting…

A: Internal control: Internal control is a process which ensures continuous reliability of…