Internal Control Activities Within the Purchasing Process, Identified as Adequate

question 4

Multiple Choice

Internal control activities within the purchasing process, identified as adequate records and documents, would include which of the following?

• A)Files are to be maintained for purchase requisitions, purchase orders, receiving reports, and invoices.
• B)Periodic physical inventory counts are to be reconciled with the inventory ledger.
• C)Companies are to implement controls where the corresponding benefit exceeds the related cost.
• D)Avoid having the same individuals who handle the inventory also have access to the related accounting records.

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Definitions:

Economic Person

A theoretical concept in economics that depicts an individual as rationing and making decisions to maximize personal satisfaction or utility, based on the assumption of rational behavior.

Social Person

Refers to an individual who enjoys engaging with others, building relationships, and participating in social activities.

Total Quality Control

A management approach to long-term success through customer satisfaction, where all members of an organization participate in improving processes, products, services, and the culture in which they work.

W. Edwards Deming

An influential figure in the field of quality management, known for his work in improving production methods and advocating for statistical process control.