Which of the Following Statements Regarding the Maintenance of Adequate

question 79

Multiple Choice

Which of the following statements regarding the maintenance of adequate records and documentation in the cash disbursement process is NOT true?

• A)An accounts payable subsidiary ledger and a cash disbursement journal are fundamental records in the cash disbursement process.
• B)The practice of issuing checks on prenumbered forms creates a record of the sequence of transactions.
• C)The orderly maintenance of accounts payable records facilitates effective cash management techniques.
• D)Physical controls should be in place in the areas where cash is retained and disbursed.

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Definitions:

Buyer's Use

The intended or actual application of a purchased product or service by the consumer.

FOB

An abbreviation of free on board.

FAS

An abbreviation for the expression free alongside ship.

Immediate Payment

A demand for payment to be made at once, typically in a transaction, without any delay or installment arrangements.