The Information from a Purchase Must Flow into the Purchase

question 65

Multiple Choice

The information from a purchase must flow into the purchase recording systems, the accounts payable and cash disbursement systems, and the inventory tracking systems.In an IT accounting system, these recording and processing systems are called:

• A)General Ledger Systems
• B)Integrated Accounting Systems
• C)Journal Application Systems
• D)Transaction Processing Systems

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Definitions:

Receiving Goods

The process of accepting delivery of goods from suppliers, often involving inspection and verification of order accuracy.

Potential for Errors

The likelihood or risk that inaccuracies or mistakes may occur within a process or set of data.

Fraudulent Activity

Deliberate deception to secure unfair or unlawful gain, often involving financial transactions.

Incompatible Duties

Tasks within an organization that are separated to prevent fraud or error, ensuring no individual has control over all aspects of a transaction.