Which of the Following Is the Best Control Procedure to Prevent

question 40

Multiple Choice

Which of the following is the best control procedure to prevent the payment of an invoice twice?

• A)Review of supporting documentation by the person signing the check.
• B)Requiring dual signatures on checks.
• C)Use of a check protector.
• D)Reconciliation of vendor statements to accounts payable.

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Definitions:

Marginal Social Cost

The cumulative expense to the community for creating an extra unit of a product or service.

Private Cost

The cost incurred by a person or a firm directly involved in a transaction, excluding any external or social costs.

Efficient Outcome

A situation where resources are allocated in the most effective way possible, maximizing benefits without wasting resources.

Home Business

A business operated from the owner's home, often characterized by lower overhead costs and flexible working hours.