As Part of a Sound System of Internal Controls, All

question 79

True/False

As part of a sound system of internal controls, all disbursements (with the exception of petty cash) should be made by check.

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Definitions:

Coupon Rate

The coupon rate represents the yearly interest percentage that is paid out on a bond, depicted as a proportion of its nominal value.

Premium

The amount by which the price of a financial instrument or asset exceeds its face value or principal amount, often related to bonds or insurance products.

Discount

A reduction in the price of a good or service, or in finance, the process of determining the present value of a payment or stream of payments that is to be received in the future.

Yield To Maturity

An investor's annualized return on a bond if held to its maturity date, considering all coupon payments and the principal repayment.