For Effective Internal Control Purposes, the Accounts Payable Department Generally

question 79

Multiple Choice

For effective internal control purposes, the accounts payable department generally should

• A) approve the purchase order.
• B) have the authority to sign the checks.
• C) establish the agreement of the vendor's invoice with the receiving report and purchase order.
• D) supervise the preparation of the receiving report.

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Definitions:

Normal Rate Of Return

The average expected or required return on an investment or project, reflecting the usual profit level for the market or industry.

Last Dollar Spent

The concept referring to the allocation of the final unit of currency in an economic decision-making process.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the extent to which a company exceeds its break-even point.

Last Dollar Spent

A concept in consumer choice theory that refers to the allocation of the last unit of currency by a consumer to optimize utility.