Which Internal Control Procedure Is Followed When Management Authorizes the Purchasing

question 132

Multiple Choice

Which internal control procedure 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)Independent verification
• D)Proper authorizations

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Definitions:

Trademark

A distinguishable symbol, pattern, or phrase that differentiates the goods or services of a specific origin from those of other sources.

Oligopolists

Firms or individuals that dominate a particular market, leading to a market structure known as oligopoly, where a few entities control the majority of market share.

Undistributed Profits

Profits earned by a company that are not paid out as dividends to shareholders but are retained within the company for reinvestment.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or market.