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.

Recognize the legal considerations and consumer rights under the Consumer Protection Act.

Understand the significance and legal effect of a contract being sealed or under seal.

Determine the legal consequences of modifying a contract and the relevance of additional agreements or understandings.

Distinguish between different types of contracts and their requirements for validity and enforceability.

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Definitions:

Financial Statements

Formal reports detailing the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs.

LIFO Inventory Valuation

Last-in, first-out method, an inventory costing method where the last items purchased are the first ones considered sold.

Phantom Profits

Profits that are recorded on the books but do not result in an actual cash benefit, often due to accounting practices or non-cash expenses.