Revenue/Receipts-Sales

Question 1

Tracing bills of lading to sales invoices provides evidence that

Answer 1

Tracing bills of lading to sales invoices provides evidence that shipments to customers were invoiced. It is a test of the completeness assertion.

Question 2

Sound internal control procedures dictate that defective merchandise returned by customers should be presented initially to the

Answer 2

Receiving clerk

Question 3

Which of the following internal control procedures would most likely assure that all billed sales are correctly posted to the accounts receivable ledger?

Answer 3

Daily sales summaries are compared to daily postings to the accounts receivable ledger

Question 4

Proper authorization of write-offs of uncollectible accounts should be approved in which of the following departments?

Answer 4

Treasurer