Control Over Cash Disbursements Is Generally More Effective When

question 194

Multiple Choice

Control over cash disbursements is generally more effective when

• A) all bills are paid in cash.
• B) disbursements are made by the accounts payable subsidiary clerk.
• C) payments are made by check.
• D) all purchases are made on credit.

---

Definitions:

Wages Payable

An account that records the amounts owed to employees for work performed that have not yet been paid.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

Capital Stock

The total amount of a company's shares that are authorized for issuance, representing the ownership of the company.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, debt, and paying dividends.