A Control Plan to Ensure Input Accuracy in Payables Processing

question 29

Multiple Choice

A control plan to ensure input accuracy in payables processing is:

• A) requisition confirmation to originating department
• B) match invoice, purchase order, and receiving report
• C) tickler file of payments due
• D) independent authorization to make payment

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, typically a fiscal quarter or year, to calculate the net income or loss.

Direct Materials

Raw materials that can be directly attributed to the production process of a product and are clearly identified as part of the finished product.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production process, such as maintenance, supervision, and utilities.

Operating Expenses

Costs related to the normal operations of a business, such as salaries, rent, and utilities, but excluding cost of goods sold.