In a System of Good Internal Control,a Payment to a Supplier

question 83

Multiple Choice

In a system of good internal control,a payment to a supplier requires which documents for proper approval?

• A) A journal entry, a supplier invoice, and a description of the goods being purchased
• B) A receiving report, an invoice, and a purchase order
• C) A purchase order, a journal entry, and a price catalog
• D) A supplier invoice, a bill of lading, and the supplier's financial statements

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Definitions:

Minimum Required Rate

The lowest return on investment or interest rate desired by an investor or required by a regulator or policy.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the return of an investment by its cost.

Net Operating Income

A measure of profitability that calculates how much revenue exceeds the operating expenses of a company, excluding taxes and interest.

Average Operating Assets

The average value of the assets that are used in the normal course of business operations, calculated over a specific period.