R Budd, the Purchasing Agent of Lake Hardware Wholesalers, Has

question 97

Multiple Choice

R. Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a cash-on-delivery (COD) basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control over

• A)purchase requisitions.
• B)cash receipts.
• C)perpetual inventory records.
• D)purchase orders.

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