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:

Simplify

To reduce a mathematical expression or equation to its simplest form by performing all operations and simplifying all terms.

Evaluate

To calculate the numerical value of an expression, equation, or function when certain values are known or substituted for variables.

Simplify

To reduce a mathematical expression to its simplest form by performing operations and combining like terms.

Evaluate

The process of calculating the value of an expression.