The Following Set of Items Describes Activities Completed by a Company

question 59

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
-The receiving department compares the quantity received with the quantity printed on the receiving report when the purchase order was prepared.

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

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Definitions:

Damages

A monetary compensation awarded by a court to indemnify someone who has suffered loss or injury due to the unlawful act or negligence of another.

Privity of Contract

The rule that only the individuals or entities who are parties to a contract can have rights or duties imposed by the contract itself.

Statutory Assignment

The transfer of rights or benefits from one party to another in accordance with specific statutes or laws.

Equitable Assignment

The transfer of rights or benefits from one party to another, recognized by equity and intended to be binding, often used in absence of formal legal assignment.