TCP Corporation issues a purchase order whenever it buys inventory. Internal controls associated with the purchase order may include:
A)Sequential numbering
B)Transaction limits
C)Both A and B
D)Neither A nor B

Question

Quizplus · Accepted Answer

Sequential numbering ensures that each purchase order is unique and can be easily tracked, while transaction limits set parameters for authorized purchases and prevent unauthorized spending. Therefore, both options A and B are important internal controls for ensuring proper purchasing procedures.

TCP Corporation Issues a Purchase Order Whenever It Buys Inventory