Question
6. Each transaction, suggest two internal controls you would implement. Justify your response. Here's an example to guide you: Transaction: Big Marker purchased supplies on
6. Each transaction, suggest two internal controls you would implement. Justify your response. Here's an example to guide you:
Transaction: Big Marker purchased supplies on account, $100.
Business process: Acquisition/ payment.
Journal entry: Debit Supplies $100. Credit Accounts Payable $100.
please answer this
Elements: Supply is an asset; accounts payable, a liability
Forms: Purchase requisition and purchase order.
Additional information: name of the primary contact person at the vendor, sp type and quantity of supplies purchased (e.g., 10 boxes of paper clips)
Internal controls: Transaction authorizations would ensure that only the Pur department can issue purchase orders. Sending a blind copy of the purchase e Receiving department would aid in the segregation of duties.
please answer this one.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started