Which of the Following Is the Most Effective Control Activity

question 63

Multiple Choice

Which of the following is the most effective control activity to detect vouchers prepared for the payment of goods that were not received?

• A)Counting of goods upon receipt in the storeroom.
• B)Matching of purchase order, receiving report, and vendor invoice for each voucher in the accounts payable department.
• C)Comparison of goods received with goods requisitioned in the receiving department.
• D)Verification of vouchers for accuracy and approval in the internal audit department.

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Definitions:

Actual Factory Overhead

The total of all indirect manufacturing costs that have been incurred during a specific period.

General Ledger Account

The main accounting record of a company that uses double-entry bookkeeping, containing all the financial transactions.

Time Ticket

A document used to record the amount of time an employee spends on various tasks, often used for billing clients or calculating labor costs in manufacturing.

Direct Labor Costs

Costs that can be directly attributed to the production of goods or services, including wages of workers physically making a product.