A Client Recorded a Payable for a Large Purchase Twice

question 6

Multiple Choice

A client recorded a payable for a large purchase twice.Which of the following controls would be most likely to detect this error in a timely and efficient manner?

• A)Footing the purchases journal.
• B)Reconciling vendors' monthly statements with subsidiary payable ledger accounts.
• C)Tracing totals from the purchases journal to the ledger accounts.
• D)Sending written quarterly confirmations to all vendors.

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Definitions:

Angel Capitalism

Investment in start-up companies by wealthy individuals, known as angel investors, who provide capital in exchange for equity or convertible debt.

Venture Capitalism

A form of private equity and financing that investors provide to startup companies and small businesses with long-term growth potential.

Factoring

A financial transaction where businesses sell their accounts receivable to a third party at a discount for immediate cash.

Same-Store Sales

A retail industry metric comparing the revenue earned from established stores in a certain period to the revenue during a similar period in the past.