Control Over Cash Disbursements Is Generally More Effective When

question 74

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 cheque or electronic funds transfer.
• D)all purchases are made on credit.

---

Definitions:

New Stock

Shares that are issued for the first time by a company to the public in the primary market.

Open Market Purchase

The buying of shares of a company through the stock market by individuals or companies.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Share Repurchase

A company's decision to buy back its own shares from the marketplace, reducing the number of outstanding shares.