Which of the Following Types of Information Would an Internal

question 438

Multiple Choice

Which of the following types of information would an internal auditor expect to find in the supporting documentation for a high-level accounts payable process flowchart?

• A) A copy of the new customer request form.
• B) An overview of the steps for validating invoices.
• C) The number of payments paid before the due date of the invoice.
• D) The payment terms and credit limit of the vendor to be paid.

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Definitions:

Long-Term Debt

Long-Term Debt comprises loans and financial obligations lasting more than one year, used by businesses to finance long-term investments or projects.

Inflow Of Cash

Money or cash equivalents coming into a business, typically from operations, investments, or financing activities.

Bond Payable

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, with a promise to pay back the principal along with interest on specified dates.

Operating Activities

Activities that constitute the primary or main activities of a company, such as selling goods and services, which are reflected in the income statement.