TEST MCQ SKILLS | A Place to test Your Knowledge

Which document triggers the update of the inventory subsidiary ledger?

bill of lading

stock release

sales order

shipping notice

Correct! Wrong!

Which of following functions should be segregated?

opening the mail and recording cash receipts in the journal

authorizing credit and determining reorder quantities

shipping goods and preparing the bill of lading

providing information on inventory levels and reconciling the bank statement

Correct! Wrong!

When will a credit check approval most likely require specific authorization by the credit department?

when verifying that the current transaction does not exceed the customer’s credit limit

when verifying that the current transaction is with a valid customer

when a valid customer places a materially large order

when a valid customer returns goods

Correct! Wrong!

Which type of control is considered a compensating control?

segregation of duties

access control

supervision

accounting records

Correct! Wrong!

The bill of lading is prepared by the :

sales clerk.

warehouse clerk

shipping clerk.

billing clerk.

Correct! Wrong!

Which of the following is NOT an independent verification control?

The shipping department verifies that the goods sent from the warehouse are correct in type and quantity.

General ledger clerks reconcile journal vouchers that were independently prepared in various departments.

The use of prenumbered sales orders.

The billing department reconciles the shipping notice with the sales invoice to ensure that customers are billed for only the quantities shipped.

Correct! Wrong!

Which situation indicates a weak internal control structure?

The AR clerk authorizes the write off of bad debts

the record-keeping clerk maintains both AR and AP subsidiary ledgers

the inventory control clerk authorizes inventory purchases

the AR clerk prepares customer statements every month

Correct! Wrong!

Which function or department below records the decrease in inventory due to a sale?

warehouse

sales department

billing department

inventory control

Correct! Wrong!

Which function should the billing department NOT perform?

record the sales in the sales journal

send the ledger copy of the sales order to accounts receivable

send the stock release document and the shipping notice to the billing department as proof of shipment

send the stock release document to inventory control

Correct! Wrong!

Which document is NOT prepared by the sales department?

packing slip

shipping notice

bill of lading

stock release

Correct! Wrong!

Which document triggers the update of the inventory subsidiary ledger?

Which of following functions should be segregated?

When will a credit check approval most likely require specific authorization by the credit department?

Which type of control is considered a compensating control?

The bill of lading is prepared by the :

Which of the following is NOT an independent verification control?

Which situation indicates a weak internal control structure?

Which function or department below records the decrease in inventory due to a sale?

Which function should the billing department NOT perform?

Which document is NOT prepared by the sales department?

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