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 sequential numbering and transaction limits
D)Neither sequential numbering nor transaction limits

Question

Quizplus · Accepted Answer

Sequential numbering ensures that all purchase orders are accounted for and easily traceable, while transaction limits help prevent unauthorized purchases or excessive spending. Therefore, both sequential numbering and transaction limits are important internal controls associated with purchase orders.

TCP Corporation Issues a Purchase Order Whenever It Buys Inventory