Within Cash Disbursements, All of the Following Should Be True

question 35

Multiple Choice

Within cash disbursements, all of the following should be true before a check is prepared, except that:

• A)The purchase order, receiving report, and invoice have been matched.
• B)The purchased goods have been used.
• C)Sufficient cash is available.
• D)The invoice discount date or due date is imminent.

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Definitions:

Exemptions

Provisions in tax law that allow taxpayers to reduce their taxable income, often for specific activities or investments.

Government Borrowing

The method by which a government finances its expenditure by issuing debt instruments, such as bonds.

Public Expenditures

Refers to the spending of government funds on goods, services, and infrastructure for the public benefit and economic stability.

Crowding Out

A situation in which increased public sector borrowing leads to a reduction in private sector spending, either because of higher interest rates or because available financial resources are used by the government.