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Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141 Exercise 40
SEGREGATION OF FUNCTIONS
Which, if any, of the following situations represent improper segregation of functions?
a. The billing department prepares the customers' invoices, and the accounts receivable department posts to the customers' accounts.
b. The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are per formed by the accounts receivable department.
c. The shipping department ships goods that have been retrieved from stock by warehouse personnel.
d. The general accounting department posts to the general ledger accounts after receiving journal vouchers that are prepared by the billing department.
Which, if any, of the following situations represent improper segregation of functions?
a. The billing department prepares the customers' invoices, and the accounts receivable department posts to the customers' accounts.
b. The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are per formed by the accounts receivable department.
c. The shipping department ships goods that have been retrieved from stock by warehouse personnel.
d. The general accounting department posts to the general ledger accounts after receiving journal vouchers that are prepared by the billing department.
Explanation
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Segregation of functions
Means the dist...
Accounting Information Systems 8th Edition by James Hall
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