Which of the Following Questions Would Most Likely Be Included

question 56

Multiple Choice

Which of the following questions would most likely be included in an internal control questionnaire concerning the completeness of purchasing transactions?

• A)Is an authorized purchase order required before the receiving department can accept a shipment or the accounts payable department can record a voucher?
• B)Are prenumbered purchase requisitions used and are they subsequently matched with vendor invoices?
• C)Is there a regular reconciliation of the inventory records with the file of unpaid vouchers?
• D)Are prenumbered purchase orders, receiving reports, and vouchers used, and are the entire sequences accounted for?

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Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount rises, thereby imposing a higher percentage rate on those with higher incomes.

Marginal Tax Rate

The rate at which the last dollar of a person’s income is taxed, indicating the impact of an additional dollar of earnings on the amount of taxes paid.