The Use of Automatic Pre-Authorized Monthly Bill Payments

question 116

Multiple Choice

The use of automatic pre-authorized monthly bill payments

• A) has declined significantly in Canada over the past several years.
• B) reduces the effectiveness of an organization's internal control system.
• C) is a form of electronic funds transfer.
• D) substantially increases the amount of paperwork required by the accounting department.

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Definitions:

Industry

The economic activity concerned with the production of goods, services, and the extraction of raw materials.

Requirements Contract

An agreement in which one party agrees to purchase all of his or her requirements of a particular product from another party. See also output contract.

Output Contract

An agreement in which a seller agrees to sell “all the goods we manufacture” or “all the crops we produce” to a particular buyer. See also requirements contract.

Valid Contract

A contract that is legally binding and fully enforceable by the court.