One of the Ways to Prevent the Use of Fictitious

question 14

Multiple Choice

One of the ways to prevent the use of fictitious vendors to steal company funds is to

• A)have adequate network access controls to prevent unauthorized access to transaction files.
• B)ensure that accounts payable programs are available only in source code.
• C)establish controls to establish only approved vendors.
• D)reconcile the accounts payable trial balance to the general ledger.

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Definitions:

Interest Rates

The percentage charged on borrowed money, or earned through lending money or making investments, over a specified period.

Income Bond

An income bond is a type of bond that only pays interest if the issuing company is profitable, making it a riskier investment than bonds with guaranteed interest payments.

Operating Loss

A situation where a company's operating expenses exceed its gross profit, indicating a loss in its core business operations.

Miss A Payment

A situation where a debtor fails to make an agreed-upon payment to a lender or creditor by the due date.