Question

51. An employee in the accounts payable will record the purchase and produce a voucher when

Select one:

a. an invoice is received.

b. inventories are received.

c. an invoice is successfully matched with a purchase order.

d. none of the above.

52. An example of poor internal control is

Select one:

a. The accountant should not have physical custody of the asset nor access to it.

b. The custodian of an asset should not maintain or have access to the accounting records.

c. One person should be responsible for handling related transactions.

d. A salesperson makes the sale, and a different person ships the goods.

53. In a bank reconciliation, an outstanding check is:

Select one:

a. added to the bank balance

b. deducted from the bank balance

c. added to the book balance

d. deducted from the book balance

Answer 1

51) Purchase order is a document issued by a buyer to seller indicating types, quantities, and agreed prices for products.

An Invoice is the document which includes list of goods and services purchased with a statement of sum to be paid. Invoice is to be tallied with purchase order.

Option C is correct option

52) Internal control is a process for smoothing an organization's objectives in operational effectiveness and efficiency and compliance with laws, regulations and policies

Option C is correct option

53) In a bank reconciliation, an outstanding check is deducted from the bank balance as uncleared checks in bank account in the current month, the check will remain on the list of outstanding checks.

B is correct option