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:

Compounded Continuously

A method of calculating interest where the interest amount is constantly added to the principal, leading to exponential growth.

Annual Interest Rate

The percentage of a sum of money charged for its use per year.

Compounded Continuously

A way of calculating interest where the frequency of compounding is so high that it is effectively continuous, leading to exponential growth.

Exponential Equation

An equation in which a variable appears in the exponent, showing the rate of growth or decay.