In a good internal control system,which of the following sets of documents is required for proper approval of a payment to a supplier?
A) a journal entry, a supplier invoice, and a description of the goods being purchased
B) a receiving report, an invoice, and a purchase order
C) a purchase order, a journal entry, and a price catalog
D) a supplier invoice, a bill of lading, and the supplier's financial statements

Question

Quizplus · Accepted Answer

A receiving report provides evidence that the goods have been received, an invoice is evidence of the amount owed, and a purchase order is the initial authorization for the transaction. Together, these documents provide a paper trail for the approval and payment of the supplier. The other options do not provide the same level of documentation and control.

In a Good Internal Control System,which of the Following Sets