Which of the Following Internal Controls Wold Help Prevent Overpayment

question 46

Multiple Choice

Which of the following internal controls wold help prevent overpayment to a vendor or duplicate payment to a vendor?

• A)Review and cancellation of supporting documents after issuing payment
• B)Requiring the check signer to mail the payment to the vendor
• C)Review of the accounts where the expenditure transaction has been recorded
• D)Approving the purchase before the goods are ordered from the vendor

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Definitions:

Maturity Value

The amount of money an investment will grow to over a period of time at a specified interest rate.

Interest Rate

The percentage of a loan that is added on as interest for the borrower, usually stated as an annual rate.

Economic Value

A measure of the benefit provided by a good or service to an economic agent.

Payments

Transfers of money, or other agreed-upon medium, from one party to another in exchange for goods, services, or to fulfill a legal obligation.