Question

soods have been returned the mes the adjustment of the customer's account 37) Upon notification from the receiving department that the goods and manager issues an) _.which authorizes the adjustment of the cus A) debt memo B) credit mcmo C) adjusting entry D) bill of lading 38) Which of the following is not one of the controls when customer payments are com with other mail? A) preparing a remittance list as mail is opened B) restrictively endorsing checks when received C) requiring two mail room clerks to open mail together D) requiring the controller to be personally present when mail is received and opened 39) Segregation of duties controls dictates that the collection and recording functions be separate from each other. However, the accounts receivable department needs to know customers pay their invoices. What is a solution to this potential internal control problem A) Establish a lockbox arrangement with a bank. B) Have customers send a remittance advice with their payment. C) Have mailroom personnel prepare a remittance list which can be forwarded to accounts receivable. D) all of the above 40) Requiring all packing slips be reconciled to purchase orders before accepting a delivery of inventory would be most likely to prevent which of the following situations? A) A supplier delivers more inventory than ordered at the end of the year and sends an invoice for the total quantity delivered B) An employee mails a fake invoice to the company, which is then paid. C) The inventory records are incorrectly updated when a receiving department employee enters the wrong product number on the receiving report D) Receiving department employees steal inventory and then claim the inventory was received and delivered to the warehouse. 41) Which of the following is not an activity performed in the expenditure cycle? A) ordering B) receiving C) cash disbursement D) shipping

Answer 1

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37	Debit Memo	Option A
38		Option C
39	All of the above	Option D
40		Option A
41	Shipping	Option D