The Receiving Clerk at Wattana Technologies Examines Incoming Shipments and Reconciles

question 98

Multiple Choice

The receiving clerk at Wattana Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders.A receiving report is then sent to accounts receivable and the vendor's invoice is approved for payment.Which of the following would correct control weaknesses related to these activities?

• A)Accounts payable should reconcile the purchase order and the receiving report.
• B)The invoice should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled.
• C)Invoices,purchase orders,and receiving reports should be reconciled by the receiving clerk.
• D)Controls are adequate under the current system.

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Definitions:

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A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.

Par Common Stock

Common stock issued with a nominal value expressed in the corporate charter, which represents the stock's legal capital per share.

Market Price

The prevailing market price at which you can buy or sell an asset or service.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before common stockholders can be paid dividends.