For the Following Situation,state Whether It Represents a Strength or Weakness

question 173

Essay

For the following situation,state whether it represents a strength or weakness in internal control and give the reason for your answer.
Baker Auto Supply purchases merchandise inventory from A & B Company.The accountant places the order,verifies receipt of the merchandise,and records the transaction in the general journal.

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Definitions:

Budget Deficit

The financial situation where an entity's expenses exceed its revenues over a specified period, leading to borrowing or debt.

Budget Surplus

An excess of tax revenue over government spending

Loanable Funds

The resources available for borrowing in the financial markets, comprising savings and any other available funds.

National Saving

The total amount of savings generated within a country, including both private savings by individuals and businesses, and public savings from government budgets.