The Accuracy of Purchases Can Be Verified by Which of the Following

question 36

Multiple Choice

The accuracy of purchases can be verified by which of the following processes?

• A)A computer starts with the population of daily vouchers and compares quantities with the underlying receiving report, compares prices to the underlying purchase order, and checks the mathematical accuracy of the voucher.
• B)A computer starts with the population of daily receiving reports and develops a one for one match with vouchers to ensure that each receiving report results in a voucher (the recording of a payable).
• C)A computer starts with the population of daily vouchers and compares the date on the voucher with the date on the underlying receiving report.
• D)Identifying what can go wrong (WCGW) from initiating the transaction to recording it in the general ledger.

Understand the concept of fraud in the inducement and fraud in the factum and how they affect liability.

Learn about specific UCC provisions related to discharge, impairment of collateral, and the warranties involved in the transfer of negotiable instruments.

Understand the conditions under which a drawer or endorser becomes liable.

Identify and understand key banking problems and ethical considerations in banking transactions.

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Definitions:

Claret

A term often used in British English to refer to red Bordeaux wine.

Utility Function

A mathematical representation of how different goods or bundles of goods provide satisfaction or utility to a consumer.

Substitution Effect

The change in the consumption of goods as a result of a change in their relative prices, holding the consumer's utility level constant.

Income

The financial gain received by an individual or business, typically expressed as a total earnings or profit.