In a Good Internal Control System, Which of the Following

question 54

Multiple Choice

In a good internal control system, which of the following documents are required for proper approval of a payment to a supplier?

• 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:

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.

Variable Selling And Administrative Expense

Costs that vary with sales volume, such as commissions or shipping charges.

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, combining sales, production, and financial aspects to overview performance.

Sales Forecast

An estimate of the amount of sales a company expects to achieve over a specific period, often used for strategic planning and resource allocation.