Green-Green Market Ltd is a wholesaler supplying
fresh fruits and vegetables to a number of large retail grocery stores across
South Africa. Green-Green Market Ltd purchases inventory (fruits and
vegetables) directly from farmers and repackage the fruits and vegetables into
smaller units for household consumption, before sales to retail stores take
place. The following control procedure takes place in the acquisition and
payments cycle:

On transfer of goods from the receiving
bay to the warehouse, the stores clerk, Mr Stork, signs the goods received note
to acknowledge acceptance of the goods.

Which one of the following alternatives best describes the correct control procedure?

Question

Green-Green Market Ltd is a wholesaler supplying
fresh fruits and vegetables to a number of large retail grocery stores across
South Africa. Green-Green Market Ltd purchases inventory (fruits and
vegetables) directly from farmers and repackage the fruits and vegetables into
smaller units for household consumption, before sales to retail stores take
place. The following control procedure takes place in the acquisition and
payments cycle:

On transfer of goods from the receiving
bay to the warehouse, the stores clerk, Mr Stork, signs the goods received note
to acknowledge acceptance of the goods.

Which one of the following alternatives  best  describes the  correct  control procedure?

Answer

D.   On
transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr
Stork, signs the  delivery note  to acknowledge acceptance of the goods.

Answer

C.   On
transfer of goods from the receiving bay to the warehouse, the  receiving
clerk , Mr Stork, signs the goods received note to acknowledge acceptance of
the goods.

Answer

B.   On
transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr
Stork,  should accept inventory short delivered but identify such goods
clearly on the goods received note, before both parties (the deliverer and the
receiver) sign  for the amendments made.

Answer

E.   On
transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr
Stork,  compares the physical goods to the goods received note  before signing
the goods received note to acknowledge acceptance of the goods.

Answer

A.   On
transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr
Stork,  performs at least a superficial test of the condition of the goods, 
before signing the goods received note to acknowledge acceptance of the goods.

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Green-Green Market Ltd is a wholesaler supplying fresh fruits and vegetables ...

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