The Following Set of Items Describes Activities Completed by a Company

question 96

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-Cheques are signed by the clerk in the accounting department.

• A)adheres to sound internal controls
• B)violates sound internal controls
• C)neither strengthens nor violates internal control

---

Definitions:

Best Alternative

The most acceptable option or course of action available to an individual or group, often considered in the absence of a preferred choice.

Negotiated Agreement

An arrangement or deal reached by two or more parties through the process of negotiation.

Tangible Factors

Concrete and measurable elements that can influence decisions and outcomes, such as money, resources, or physical assets.

Interdependent Relationships

Connections between entities or individuals wherein they depend on each other to some extent, highlighting the mutual dependence aspect.