Which of the Following Is not a Suggested Procedure to Establish

question 84

Multiple Choice

Which of the following is not a suggested procedure to establish internal control over cash disbursements?

• A)Anyone can sign the checks.
• B)Different individuals approve and make the payments.
• C)Blank checks are stored with limited access.
• D)The bank statement is reconciled monthly.

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Definitions:

Effective-Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.

Amortization

The process of spreading out the cost of an intangible asset over its useful life or the repayment of loan principal over time.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflected in its income statement.

Contractual Interest Rate

The agreed-upon rate of interest to be paid on loans or bonds, specified within a contract.