Controls Specific to the Recording of Cash Payments Include Which

question 44

Multiple Choice

Controls specific to the recording of cash payments include which of the following?

• A) an independent check by the accounting supervisor of the agreement of the amounts journalised and posted to accounts payable with the cheque summary received from the general accounts department
• B) an independent check of the agreement of the total of cheques issued with a batch total of the vouchers processed for payment.
• C) limits on access to blank cheques
• D) all of the above.

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Definitions:

Monthly Schedule Depositor

A designation for businesses that are required to deposit employment taxes on a monthly basis, typically when their tax liability in a lookback period exceeds certain thresholds.

Tax Liability

The total amount of tax owed to the IRS or other tax authorities after all deductions, credits, and exemptions.

Semiweekly Depositor

A semiweekly depositor is a business that must deposit employment taxes on Wednesdays or Fridays, depending on the day wages are paid, due to the size of its payroll.

FICA Withholding

Refers to the payroll taxes automatically deducted from an employee's paycheck to fund Social Security and Medicare programs.