Which of the Following Is Not an Independent Verification Related

question 49

Multiple Choice

Which of the following is not an independent verification related to cash disbursements?

• A)The cash disbursements journal is reconciled to the general ledger.
• B)The stock of unused checks should be adequately secured and controlled.
• C)The bank statement is reconciled on a monthly basis.
• D)The accounts payable subsidiary ledger is reconciled to the general ledger.

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Definitions:

Cash Payback Period

The cash payback period is the duration of time it takes for an investment to generate enough cash flow to recover its original cost.

Residual Value

The estimated salvage value of an asset at the end of its useful life.

Present Value Factors

Multipliers used to calculate the present value of a future amount of money or stream of cash flows.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.