In a Good Internal Control System,which of the Following Sets

question 82

Multiple Choice

In a good internal control system,which of the following sets of documents is 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

---

Definitions:

Incomplete Note

A financial or promissory note missing essential details, making it unenforceable or incomplete until the information is furnished.

Unauthorized Manner

Refers to actions or operations carried out without official permission or approval.

HDC

Holder in Due Course, a term in commercial law referring to a person who has acquired a negotiable instrument in good faith and for consideration, and thus has certain rights above the original parties.

FTC Rule 433

Known as the Holder in Due Course Rule, it protects consumers by allowing them to make claims directly against creditors in certain credit transactions.