When Reviewing the Controls and Procedures in the Acquisition and Payment

question 120

Multiple Choice

When reviewing the controls and procedures in the acquisition and payment cycle,

• A) companies cannot record the liability for the acquisition until the invoice is received from the vendor.
• B) the purchasing department has the responsibility for verifying for appropriateness of the acquisition.
• C) personnel who record the acquisitions should not have access to cash or other assets.
• D) the accounts payable department should account for all receiving reports to assure that the occurrence objective is satisfied.

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Definitions:

Induction

The process or ceremony of formally introducing someone to a new position, role, or environment.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Generalization

A broad statement or an idea that applies to a group of items or people, based on common qualities.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.