Which of the following is a preventive control?
A)credit check before approving a sale on account
B)bank reconciliation
C)physical inventory count
D)comparing the accounts receivable subsidiary ledger to the control account

Question

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A credit check before approving a sale on account is a preventive control because it helps prevent the sale of goods or services to customers who may not be able to pay. This control is designed to lessen the risk of bad debt write-offs by verifying that the customer has a good credit history and an ability to pay. The other options listed are detective or corrective controls designed to identify errors or irregularities after they have occurred.

Which of the Following Is a Preventive Control