Internal Control over Sales Transactions Quiz
15 Questions
0 Views

Internal Control over Sales Transactions Quiz

Created by
@VictoriousInsight

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is not an assertion related to the test of controls over sales and receivables?

  • Existence or Occurrence
  • Rights and Obligations
  • Completeness
  • Accuracy and Timeliness (correct)

    • What method is not used to obtain information concerning specific controls over sales transactions?

  • Observation
  • Confirmation (correct)
  • Review of documentation
  • Inquiry

    • Which activity is not part of the business activities under sales transactions?

  • Billing customers
  • Accepting sales order
  • Posting to general ledger (correct)
  • Approving credit

    • What is not a test of controls over sales and receivables?

    <p>Reconciling sales records with general ledger</p> Signup and view all the answers

    Which control activity is not part of the controls test of sales transactions?

    <p>Approval of sales by senior management</p> Signup and view all the answers

    Which of the following is not an assertion related to sales and receivables?

    <p>Rights and Privileges</p> Signup and view all the answers

    What is not a method for obtaining information concerning specific controls over sales transactions?

    <p>Reconciliation</p> Signup and view all the answers

    Which of the following is a test of control for completeness of sales transactions?

    <p>Inspecting report on the last shipments that the shipping clerk sends to the billing clerk</p> Signup and view all the answers

    What is a test of control for rights and obligations regarding sales transactions?

    <p>Checking sales orders and sales invoices for terms to determine that transaction is a sale rather than a consignment</p> Signup and view all the answers

    What is a test of control for valuation or allocation of sales?

    <p>Counting and comparing goods shipped with sales orders and shipping documents prior to shipping</p> Signup and view all the answers

    What is a test of control for presentation and disclosure of sales and accounts receivable?

    <p>Determining that the invoice copy contains the signature that indicated approval on account classifications used</p> Signup and view all the answers

    What is a test of control for ensuring timely recording of sales and proper cut-off?

    <p>Inspecting report on the last shipments that the shipping clerk sends to the billing clerk</p> Signup and view all the answers

    What is a test of control for customer credit approval prior to merchandise shipment?

    <p>Examining a sample of sales order for credit approval prior to shipment</p> Signup and view all the answers

    What is a test of control for proper pricing, mathematical accuracy, and terms on sales invoices?

    <p>Checking sales orders and sales invoices for terms to determine that transaction is a sale rather than a consignment</p> Signup and view all the answers

    What is a test of control for balancing the accounts receivable subsidiary ledger to the general ledger control account?

    <p>Fooling the account receivable subsidiary ledger and comparing the total with the balance appearing in the general ledger control account</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser