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:

After-Tax Discount Rate

The discount rate that has been adjusted to reflect the net of tax status, used in calculating the present value of future cash flows after taxes.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life uniformly.

Net Advantage to Leasing

The total financial benefits of leasing an asset, compared to purchasing it, taking into account all costs and savings.

Lease Payments

Regular payments made by a lessee to a lessor for the use of a leased asset.