An Employee Authorized to Sign Checks Should Not Record

question 55

Multiple Choice

An employee authorized to sign checks should not record

• A) owner cash contributions.
• B) mail receipts.
• C) cash disbursement transactions.
• D) sales transactions.

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

The percentage charged on borrowed money, or earned through deposited funds, over a period of time.

Lottery

A form of gambling that involves the drawing of numbers at random for a prize.

Annuity Due

A type of annuity with payments made at the beginning of each period, rather than at the end, typically utilized in lease and loan agreements.