Which of the Following Statements Concerning Remote Disbursement and Controlled

question 351

Multiple Choice

Which of the following statements concerning remote disbursement and controlled disbursement is correct?

• A) These two terms mean the same thing--just like working capital means the same thing as current assets
• B) Remote disbursement is viewed as an ethical disbursement procedure, whereas controlled disbursement is often viewed as an unethical disbursement procedure
• C) Both remote and controlled disbursement are generally perceived as unethical practices and, therefore, their use is in decline
• D) Remote disbursement is often viewed as an unethical disbursement procedure, whereas controlled disbursement is not viewed in such a negative light

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Definitions:

Cash Account

An account that records cash transactions both received and expended, reflecting the cash position of a business at any given time.

Raw Material

Raw material refers to the basic, unprocessed inputs used in the production of goods and services; they are the essential components required in the manufacturing process.

Standard Costs

Predetermined costs for products or services, used as benchmarks to measure actual production costs.

Cash Account

An account that reflects the amount of cash a company has on hand, which includes currencies, checks, and balances in bank accounts.