The Following Set of Items Describes Activities Completed by a Company

question 36

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-The clerk in the accounting department records both purchases and payments of invoices.

• A)Adheres to sound internal controls
• B)Violates sound internal controls
• C)Neither strengthens nor violates internal control

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Definitions:

Predominant Aisle

The main or most prominent pathway within a store or area, often where key products or services are displayed.

Home Office

Home office pertains to a space designated in a person's residence for official business purposes, often used for tax deduction considerations.

Low Overhead

Describes a business model or operation where the fixed costs required to run the business, such as rent, utilities, and administrative expenses, are minimal, leading to higher profit margins.

Cash

Money in the form of coins and banknotes, which is considered liquid assets that can be used to settle debts, purchase goods, or services immediately.