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:

Profit Maximizing

The method or approach of aligning production and pricing to maximize profit.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Monopsony Power

The market power held by a single buyer to influence the price at which they purchase goods or services.

Elasticity Of Supply

The degree to which the quantity supplied of a good changes in response to a change in its price.