Which Internal Control Activity Is Followed When Management Authorizes the Purchasing

question 34

Multiple Choice

Which internal control activity is followed when management authorizes the purchasing department to order goods and services for the company?

• A)segregation of duties
• B)safeguarding of assets and records
• C)checks on recorded amounts
• D)clearly defined authority and responsibility

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Definitions:

Speculators

Investors who attempt to profit from market volatility by buying and selling stocks or other financial instruments, often taking higher risks.

Hedgers

Individuals or entities that enter financial contracts to reduce exposure to risk, typically by locking in prices for commodities or currencies.

Positions

Refers to the holdings or inventory of investments or trading assets owned by institutions or individuals.

Open Interest

The total number of outstanding derivative contracts, such as options or futures, that have not been settled.