For Effective Internal Control Purposes, the Vouchers Payable Department Generally

question 83

Multiple Choice

For effective internal control purposes, the vouchers payable department generally should:

• A) obliterate the quantity ordered on the receiving department copy of the purchase order.
• B) stamp, perforate, or otherwise cancel supporting documentation after payment is mailed.
• C) establish the agreement of the vendor's invoice with the receiving report and purchase order.
• D) ascertain that each requisition is approved as to price, quantity, and quality by an authorized employee.

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Definitions:

Manufacturing Equipment

The machinery and tools used in the process of producing goods, often considered a capital expense by companies.

Operating Activities

These refer to the primary revenue-generating activities of a business, such as sales of goods or services, and related expenses.

General Partnership

A business arrangement where two or more individuals agree to share all assets, profits, financial, and legal liabilities of a jointly-owned business.