For Good Internal Control

question 152

Multiple Choice

For good internal control:

• A)the purchasing agent should also receive the goods.
• B)the purchasing agent should also approve the invoice for payment.
• C)the purchasing agent should not receive the goods or approve the invoice for payment.
• D)the purchasing agent should prepare an EFT for payment.

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Definitions:

Common Stock

A type of security that signifies holding an equity stake in a corporation, indicating ownership in the company.

Dividends

Profits paid out by a company to its stockholders, frequently as a distribution of earnings.

Asset Account

An account on a company's balance sheet that represents the resources owned by the company that have economic value.

Liability Account

An account on the balance sheet indicating obligations or amounts owed to others that will require a future outlay of resources.