Internal control over accounts payable is improved when:
A)Vendor statements are reconciled with the accounts payable ledger.
B)Informal bids are obtained.
C)Annual trial balance of accounts payable subsidiary ledgers is required.
D)Payment is made upon approval of the purchasing agent.

Question

Quizplus · Accepted Answer

Reconciling vendor statements with the accounts payable ledger helps to ensure that all invoices have been accounted for and paid in a timely manner. This also helps to detect any errors or discrepancies in the accounts payable ledger. Obtaining informal bids, requiring an annual trial balance, and making payments upon approval of the purchasing agent are all important internal controls, but they do not necessarily relate specifically to improving control over accounts payable.

Internal Control Over Accounts Payable Is Improved When