In a System of Good Internal Control, a Payment to a Supplier

question 17

Multiple Choice

In a system of good internal control, a payment to a supplier requires which documents for proper approval?

• A)a journal entry, a supplier invoice, and a description of the goods being purchased
• B)a receiving report, an invoice, and a purchase order
• C)a purchase order, a journal entry, and a price catalog
• D)a supplier invoice, a bill of lading, and the supplier's financial statements

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Definitions:

Strategic Environment

The external and internal factors that influence an organization's strategy and strategic planning processes.

Organizational Culture

The collection of values, beliefs, behaviors, customs, and attitudes that characterizes an organization and guides its practices.

Derived Demand

The demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being driven by the demand for automobiles.

Noncustomers

Individuals or entities that are currently not purchasing or using a company's products or services but could potentially be converted into customers.