Answer the following statements true (T) or false (F)
1) Before signing a check, the controller or the treasurer should examine the purchase order, the invoice, and the receiving report to determine that the company received the goods and that the company is paying only for the goods received.
2) A receiving report should be matched with the supplier invoice before a payment to the supplier is approved.
3) For good internal control over cash payments, the company officer approving a payment voucher should be the same as the person who ordered the goods. This ensures that the correct amount of cash is paid.
4) For good internal control, the purchasing agent should neither receive the goods nor approve the payment.
5) For good controls over cash payments, the person who orders goods from a supplier should always be different from the person who approves the payment.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
You might also like to view...
The maker of a note recognizes_____________on its income statement
Fill in the blank(s) with correct word
Which of the following is the least beneficial aspect of holding meetings?
A) Social interaction B) Team building C) Low cost D) Problem solving E) Idea development
Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:
a. Management Discussion and Analysis. b. Assurance Opinions. c. Notes to the Financial Statements d. Management Assessments.
Which of the following is NOT true of a scatter diagram?
A) It plots data pairs in an x- and y-axis graph. B) It will portray the amount of covariation between two metric variables. C) It plots the points corresponding to each matched pair of x and y variables. D) When there is no apparent association or relationship between two variables, the points on a scatter diagram fail to create any identifiable pattern. E) There is no relationship between scatter diagrams and correlation coefficients.