Question: Business rules implement internal controls. Please review Table 6.1 in your text. Describe which business rules implement segregation of duties, and identify whether they are
Business rules implement internal controls. Please review Table 6.1 in your text. Describe which business rules implement segregation of duties, and identify whether they are obligatory, prohibited, or allowed.
| Oct.1 | Purchases (or Inventory) | 1,495 | |
| Account Payable | 1,495 | ||
| Purchased inventory on credit from Richardson Inc. | |||
| Invoice 1125 dated Oct.1, terms 2/10, net 30 | |||
| Oct. 11 | Accounts payable | 1,495 | |
| Purchase discount | 29 | ||
| Cash | 1,465 | ||
| Paid Richardson Inc. for invoice 1125 dated Oct. 1 less 2% discount | |||
| Debit to purchases or inventory account depends on weather the company uses a periodic or perpetual inventory system |
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