Question

3. For all business, purchases can be made on credit and thus the purchase cycle includes control objectives for payables. Explain the detailed control objectives included

Answer 1

Control objectives for payables

Explanation:

• The amount payable to the suppliers on account of credit purchase has to be determined.

• The objective of credit purchase is to to increase the stock.

• There should be control over the payment of creditors.

• In Purchase book all the the credit purchases is recorded and controlled.

• Credit purchase which is meant for resale in the entreprise is recorded.

• Credit purchase of assets is not mentioned in the purchase book.

• These are all the control objectives of the credit purchase to be payable to suppliers.

To know more:

How do you ascertain credit purchase

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