Why Does an Internal Control System Use a 3-Way Match

question 17

Multiple Choice

Why does an internal control system use a 3-way match?

• A)Comparing what was ordered with what was received,and what was billed ensures a company does not pay more than what was ordered or received.
• B)Comparing what was received with what was budgeted,and ensuring a company does not overspend on inventory items.
• C)Comparing what a company physically has with what was ordered,and ensuring inventory is maintained at quality level.
• D)Comparing what was ordered with what was received,and what was physically sold or remains on hand.

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Definitions:

Angel Investor

A prosperous person supplying financial support for a start-up business, often in exchange for ownership equity or convertible debt.

Post-money Valuation

The value of a company after external financing and injections of equity have been added to its balance sheet.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks.

$1 Million

Refers to the sum of one million dollars, a significant financial milestone for individuals and businesses.