1. Each month Big electric comapny mails bills 700,000 households and then process payments as they are received, what is the best way for this business to ensure that payment data entry is efficient and accurate?
a. restrictively endorse checks b. well-designed paper forms c. sequentially numbered bills d. turnaround documents
2. A manager prepared and signed checks payable to a fictitious supplier and deposited the checks into a personal bank account. which of the following internal controls would most likely have prevented, or at least detected, the embezzlement?
A. The numerical sequence of checks must be accounted for by a responsible employee on a regular basis.
B. competitive bids are used for all purchases
C. A check signer other than the manager must sign checks only when approved invoices are presented with the completed, unsigned check.
D. payments to suppliers must be made by certified check
3. In a system of well designed internal controls over the revenue cycle, the sales department should be responsible for which of the following activities?
A. approving customer requests to return defective goods
B. authorizing write-offs of uncollectible accounts
C. receiving goods returned by customers
D. Recording credit memos for sales returns and allowances.