An accounting policy that requires a purchasing manager to sign off on all purchases over $5,000 is an example of
A) general authorization.
B) specific authorization.
C) special authorization.
D) generic authorization.

Question

Quizplus · Accepted Answer

This is an example of specific authorization, where a particular individual (purchasing manager) is given the authority to approve purchases over a certain amount. General authorization is broader, relying on an individual's position or rank within a company to make decisions within certain parameters, while special authorization is granted for specific or unusual transactions. Generic authorization is not a commonly recognized term in accounting.

An Accounting Policy That Requires a Purchasing Manager to Sign