Internal Control Activities Within the Purchasing Process, Identified as Adequate

question 16

Multiple Choice

Internal control activities within the purchasing process, identified as adequate records and documents, would include which of the following?

• A)Files are to be maintained for purchase requisitions, purchase orders, receiving reports, and invoices.
• B)Periodic physical inventory counts are to be reconciled with the inventory ledger.
• C)Companies are to implement controls where the corresponding benefit exceeds the related cost.
• D)Avoid having the same individuals who handle the inventory also have access to the related accounting records.

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Definitions:

Observational Study

Research methodology where the researcher observes subjects without manipulating any variables.

Experiment

A controlled procedure carried out to discover, demonstrate, or test a hypothesis, involving manipulation of variables to observe the effect on some phenomena.

Absent From Work

Not present at one's place of employment during scheduled working hours, for reasons such as illness, personal matters, or vacation.

Aerobic Exercise

Physical activity that improves the efficiency of the cardiovascular system in absorbing and transporting oxygen, typically performed at moderate intensity over extended periods.