An Important Control in the Accounts Payable and Information Systems

question 6

Multiple Choice

An important control in the accounts payable and information systems departments is to require that those personnel who record acquisitions do not have access to

• A)lists of vendors' names and addresses.
• B)cash,marketable securities,and other assets.
• C)vendors' price lists.
• D)the accounts payable master file.

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Definitions:

Capacity

The highest amount of production a business can maintain during a specific timeframe under regular conditions.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender in case of default.

Corporate Angel

A benefactor, often a company, that provides support or rescue financing to help a struggling business or start-up.

Fortune 500

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years.