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:

Foreign Tax Credit

A tax credit that cannot be refunded for income taxes paid to an external government due to withholdings from foreign income tax.

Foreign Income Taxes

Taxes paid to a foreign government for income earned outside of the taxpayer's resident country.

U.S. Tax Liability

The total amount of tax owed to the United States government, including federal, state, and local taxes.

Foreign Tax Credit

A tax credit that reduces the tax liability of an individual or entity for certain taxes paid to foreign governments.