Which of the Following Is Not an Accurate Statement Regarding

question 48

Multiple Choice

Which of the following is not an accurate statement regarding the acquisition and payment cycle?

• A) The personnel in the receiving department should be independent of the storeroom personnel.
• B) Goods received should be physically controlled from the time of their receipt until their use or disposal.
• C) Accounting records should transfer responsibility for the goods each time they are moved.
• D) The accounting department should be responsible for receiving goods and preparing the receiving report.

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Definitions:

Many Buyers

A market condition characterized by the presence of numerous purchasers, increasing competition and potentially lowering prices.

Real Prices

Prices that have been adjusted for inflation, reflecting the true purchasing power of money over time.

CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Producer Price Index

An economic indicator that measures the average change over time in the selling prices received by domestic producers for their output.