The Internal Control Activities Within the Purchasing Process, Related to Authorization

question 25

Multiple Choice

The internal control activities within the purchasing process, related to authorization of transactions, would include which of the following?

• A)The accounting duties related to requisitioning, ordering, and receiving goods should be performed by different individuals.
• B)The custody of inventory and the recording of inventory transactions are required to be maintained.
• C)Specific individuals should be given authoritative responsibility for preparing purchase requisitions and purchase orders which would include which items to purchase, how many items, and which vendor.
• D)Periodic physical inventory counts are to be reconciled with the inventory ledger and general ledger.

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Definitions:

Localized Effect

An effect limited to a specific area, region, or part of the body, not spreading from its origin.

Thoracic Nerves

Nerves that are associated with the thorax, contributing to the motor and sensory innervation of the chest, upper back, and abdominal wall muscles.

Lumbar Nerves

A group of spinal nerves emanating from the lumbar region of the backbone, involved in movement and sensation in the lower parts of the body.

Spinal Cord

The main pathway for the transmission of information between the brain and the rest of the body, enclosed within the vertebral column.