Which of the following is a preventive control?Select one:a.physical inventory countb.comparing the accounts receivable subsidiary ledger to the control accountc.bank reconciliationd.credit check before approving a sale on accountClear my choice
Question
Which of the following is a preventive control?Select one:a.physical inventory countb.comparing the accounts receivable subsidiary ledger to the control accountc.bank reconciliationd.credit check before approving a sale on accountClear my choice
Solution
The correct answer is d. credit check before approving a sale on account. This is a preventive control because it is an action taken to deter potential problems before they happen. By checking a customer's credit before approving a sale on account, the company can prevent
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