For Effective Internal Control Over Accuracy of Transactions, the Accounts

question 41

Multiple Choice

For effective internal control over accuracy of transactions, the accounts payable department should compare the information on each vendor's invoice with the:

• A)receiving report and the purchase order.
• B)receiving report and the voucher.
• C)vendor's packing slip and the purchase order.
• D)vendor's packing slip and the voucher.

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Definitions:

Net Income

Net Income is the total earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

After-tax Salvage Value

The value of a depreciated asset after deducting any taxes owed on the sale of the asset.

Incremental Operating Cash Flow

The additional amount of cash flow a company generates from its operating activities due to a specific decision or project.

Capital Spending

Expenditures by a company for the acquisition or improvement of long-term assets such as property, plants, and equipment in order to expand its operations or efficiency.