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.

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Definitions:

EDI

Electronic Data Interchange, a system that allows the exchange of business documents and data across different companies electronically.

B2C

Business-to-Consumer, a commercial transaction model where businesses sell products or services directly to the end-users or consumers.

C2B

Consumer-to-Business, a business model where consumers create value or products that businesses purchase.

B2B

Business-to-Business, a model that involves transactions between two firms rather than between a firm and individual consumers.