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.

Understand the definition and calculation of risk premium in the investment context.

Grasp the concept of diversification and how it impacts risk management in portfolios.

Recognize the importance of considering the probability of various economic scenarios in the expected return of a portfolio.

Distinguish between systematic and unsystematic risks, including examples and their significance in portfolio management.

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Definitions:

Plastic Repair

The process of repairing or restoring plastic materials, often involving techniques like welding, filling, or reshaping.

Ureter

A tube that carries urine from the kidney to the bladder, part of the urinary tract system.

Urinary

Relating to urine or the organs of the urinary system, which includes the kidneys, ureters, bladder, and urethra.

Acidity

A measure of the concentration of hydrogen ions in a solution, reflecting its ability to donate protons and determining its pH level.