Match the Internal Control Principle Below with the Appropriate Cash

question 168

Short Answer

Match the internal control principle below with the appropriate cash disbursements procedure described.
a. Establishment of responsibility
b. Segregation of duties
c. Documentation procedures
d. Physical controls
e. Independent internal verification
f. Human resource controls
_____ 1. Compare checks to invoices.
_____ 2. Different individuals approve and make payments.
_____ 3. Print check amounts by machine with indelible ink.
_____ 4. Only designated personnel are authorized to sign checks.
_____ 5. Each check must have approved invoice.
_____ 6. Requiring employees to take vacations.

---

Definitions:

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage rate.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.

Bondholder

A bondholder is an investor or entity that owns bonds issued by corporations or governments and is entitled to receive periodic interest payments and the return of the bond's face value at maturity.

Negative Covenant

A clause in a contract that restricts certain actions by the party involved, often used in lending agreements to protect the lender.