Which of the Following Is an Internal Control Activity That

question 71

Multiple Choice

Which of the following is an internal control activity that could prevent a paid disbursement voucher from being presented for payment a second time?

• A)Vouchers should be prepared by individuals who are responsible for signing disbursement checks.
• B)Disbursement vouchers should be approved by at least two responsible management officials.
• C)The date on a disbursement voucher should be within a few days of the date the voucher is presented for payment.
• D)The official who signs the check should compare the check with the voucher and should stamp PAID on the voucher documents.

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Definitions:

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its total income.

Shares Outstanding

The total number of shares of stock that have been issued by a company and are held by investors, including both public investors and company insiders.

Stock Price

The ongoing rate at which an individual can buy or sell a company's stock in the market.

Future Earnings Growth Rate

The projected annual rate at which a company’s earnings are expected to increase, affecting the company's stock price and valuation.