Separating the Responsibilities for Purchasing, Receiving, and Paying for Equipment

question 181

True/False

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

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Definitions:

Instrument

A formal legal document that serves as evidence of a fact or a right, and can include negotiable instruments in financial transactions.

Payable On Demand

A financial term referring to a debt or obligation that must be paid or fulfilled whenever the lender or beneficiary demands.

Numerical

Relating to numbers, or expressed or represented by numbers.

Written Amounts

Quantitative figures or values that are documented or recorded in written form, especially in financial transactions.