Each Category of Processes in the Typical Purchasing System Would

question 7

Multiple Choice

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

• A)Recording invalid transactions
• B)Recording transactions at the wrong amounts
• C)Omitting actual transactions from the accounting records
• D)Transactions properly accumulated or transferred to the correct accounting records

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Definitions:

Long-Term Liabilities

Debts or obligations of a business that are due for repayment in a period longer than one year.

Installment Note

A loan that requires regular payments, or installments, over a period, which covers both principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as a yearly rate.

Installment Note

A debt instrument that requires a series of periodic payments consisting of both principal and interest.