The Internal Control That Requires "New Vendors and Changes to Vendor

question 30

Multiple Choice

The internal control that requires "new vendors and changes to vendor file be approved" satisfies the objective of

• A)occurrence.
• B)completeness.
• C)accuracy.
• D)posting and summarization.

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Definitions:

Closing Inventories

The total value of goods available for sale at the end of an accounting period, recorded on the balance sheet.

Non-Controlling Interests

The portion of equity in a subsidiary not attributable directly or indirectly to the parent company, sometimes referred to as minority interest.

Retained Earnings

Profits that a company retains for reinvestment in its operations, rather than distributing to shareholders as dividends.

Reporting Period

A specified duration of time for which an organization prepares its financial statements and reports to present its financial performance and position.