The Internal Control Process That Requires Purchase Records to Be

question 54

Multiple Choice

The internal control process that requires purchase records to be matched and verified for item descriptions, quantities, dates, authorized prices, and mathematical accuracy, will help to minimize the risk of:

• A)Stolen goods
• B)Omitted transactions
• C)Invalid purchases
• D)Incorrect accumulation

---

Definitions:

Deadweight Loss

See efficiency loss.

Marginal Cost

The increase in expenditure incurred from making one more unit of a product or service.

Marginal Benefit

The extra benefit or utility received from the consumption or production of an additional unit of a product or service.

Public Goods

Goods or services that are available for consumption by everyone and where use by one individual does not reduce availability to others.