One of Important Internal Controls Over Cash Disbursements Should Include

question 145

True/False

One of important internal controls over cash disbursements should include not only the physical signing of checks, but also the approval of electronic funds transfers by individuals with proper authority.

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Definitions:

Investing Activities

Financial actions related to the acquisition or sale of assets, such as securities and property, aimed at generating income or appreciation.

Net Cash

The distinction between a business's overall cash receipts and disbursements.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity.

Net Cash

The difference between an entity's total cash inflows and total cash outflows over a specific period.