In a system of good internal control,a payment to a supplier requires which documents for proper approval?
A) A journal entry, a supplier invoice, and a description of the goods being purchased
B) A receiving report, an invoice, and a purchase order
C) A purchase order, a journal entry, and a price catalog
D) A supplier invoice, a bill of lading, and the supplier's financial statements

Question

Quizplus · Accepted Answer

A payment to a supplier should require a receiving report to confirm goods have been received, an invoice to confirm the amount owed, and a purchase order to ensure the goods were ordered and approved for purchase. This provides a proper audit trail for the transaction and ensures that the company is paying for goods it has received and approved for purchase. A journal entry or price catalog are not typically required for approval of a payment to a supplier, and a bill of lading or financial statements may not be relevant to the transaction at hand.

In a System of Good Internal Control,a Payment to a Supplier