Internal Control Over Cash Disbursements Is More Effective When Payments

question 19

Short Answer

Internal control over cash disbursements is more effective when payments are made by ______________ rather than by ______________.

---

Definitions:

Diminishing Returns

A principle stating that as one factor of production increases while others remain fixed, there will eventually be a decrease in the incremental output gained.

Normal Rate

A standard or usual level of financial return on investment or interest on loans.

Supply

The total amount of a product or service that is available to consumers at a given price over a specific period.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.