Internal Control Over Accounts Payable Is Strengthened When a Monthly

question 63

Multiple Choice

Internal control over accounts payable is strengthened when a monthly reconciliation of the vendors' statements with recorded liabilities and the accounts payable master file with the general ledger is performed by:

• A) the auditor.
• B) the purchasing agent.
• C) an independent person.
• D) any of the above.

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Definitions:

Lengthy Time Period

An extended duration that encompasses a significant amount of time, often used in the context of planning, projects, or goals.

Diverse Set

A collection with a variety of distinct elements or members, often referring to a group of people with differing characteristics.

Stocks

Financial instruments representing ownership in a company, entitling the holder to a share of the corporation's assets and profits.

Expected Real Rate

The anticipated return on an investment after adjusting for inflation, representing the true growth of purchasing power.