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Question - Cars Inc. never paid its vendor, Bikes Inc., for a shipment, SH-00034 in the amount of $2,300 completed 3 years ago. Cars Inc. continues to be one of the best customers of Bikes Inc. The invoice was sent by Bikes jointly with the goods. The second invoice was sent together with the statement from Bikes Inc. with all sales and payments made in the month.
What type of internal control of Bikes Inc. would prevent an error like this in the future?
Stop delivering goods until the sales and payment statements show no balance outside the normal credit terms.
None of the other alternatives are correct.
Approval of sales and payment statements by the CEO, controller and Internal audit office.
CEO provides support for all invoices submitted.
Segregation of duties between Accounts Receivables and Accounts Payable staff.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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