Which of the following is consistent with effective internal control over sales transactions?
A)The accounting department prepares a shipping report authorizing the shipment of goods.
B)The accounting department accounts for all receiving reports.
C)The billing department accounts for all shipping documents.
D)The accounts payable department annually approves the extension of credit to customers.

Question

Quizplus · Accepted Answer

The billing department accounting for all shipping documents ensures that sales transactions are properly recorded and billed, aligning with effective internal control principles by ensuring that revenue is recognized when goods are shipped, and documentation is complete.

Which of the Following Is Consistent with Effective Internal Control