11. The document that the purchasing department-a-tothe vendor to place an order
ID: 2568085 • Letter: 1
Question
11. The document that the purchasing department-a-tothe vendor to place an order is called the A. Invoice approval B. Receiving report C Purchase requisition D. Invoice. E. Purchase order 12. The principles of internal control include A. Require automated sales systems B. Bond all employees C. Use only computerized systems D. Maintain minimal records E. Separate recordkeeping from custody of assets 13. A promissory note: A. Is a short-term investment for the maker. B. Is a liability to the payee. C. Is another name for an installment receivable D. Cannot be used in payment of an account receivable. E. Is a written promise to pay a specified amount of money at a certain date. A finance company or bank that purchases and takes ownership of another company receivable is called a: 14. A. Pledger B. Payee. C. Pledgee. D. Factor. E. Payer 15. A properly designed internal control system Eliminates the need for an audit. A. B. Insures profitable operations. C. Lowers the company's risk of loss. D. Is not necessary if the company uses a computerized system. E. Requires the use of non-computerized systemsExplanation / Answer
11) Purchase order - Purchase order is the document which purchasing department prepares and send to vendor to place an order. Purchase order is the commitment by buyer to pay for goods ordered. if PO is submitted in acceptance of a formal quotation or offer.
12) Separate recordkeeping from custody of assets - Is the principles of good inter controls, Maintaining separate records furnishes quickly and accurately value of the material and supplies used in various departments, safeguards organization's accounts, employees, and property or assets of an organization, Reduces risk of fraud.
13) Promissory Note: Is a written unconditional promise made by one person to another to pay specific sun of money either on demand or at the specified future date. Is a written promise to pay a specified amount of money at a certain date.
14) Factor: Is a transaction when finance company or bank purchase and takes ownership of another company receivable, In short it can also be called as short term financing, when an business needs money then it can factor (sells) its invoices, or receivables, to a third-party financial company, in turn they will charges some factoring charges or some interest or service fees.
15) Lower's the company risk of loss: Good Internal control is essential to for assuring the accomplishment of goals and objectives. It ensure the compliance with applicable laws and regulations to avoid of public scandals, which also helps in misuse or misappropriation of company's assets and takes corrective measures in safeguarding assets and also lowers the company's risk of loss.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.