Which of the Following Activities Is Not Included in the Acquisition

question 80

Multiple Choice

Which of the following activities is not included in the acquisition and payment cycle?

• A)Receipt of goods and services.
• B)Approval of items for payment.
• C)Application of cash receipts.
• D)Authorized request for goods and services.

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Definitions:

Principal-Agent Problem

A dilemma in economics where one party (the agent) is able to make decisions that impact another party (the principal), potentially leading to conflicts of interest.

Ownership

The act, state, or right of possessing something.

Control

The exercise of authoritative or regulatory influence over something or someone to guide or manage operations and behaviors.

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetrical information or misaligned incentives.