An Imprest Payroll Account That Has a Significant Balance May

question 100

Multiple Choice

An imprest payroll account that has a significant balance may indicate the presence of

• A) employees not cashing their payroll checks.
• B) fraudulent transfer of funds by the company.
• C) lack of controls over payroll distribution.
• D) the company overpaying its employees.

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Definitions:

Productive Efficiency

A situation in which an economy or entity is operating at maximum capacity, producing goods or services at the lowest possible cost.

Long-Run Equilibrium

A state in economics where all factors of production and outputs in an industry or market adjust fully to any changes, leading to a stable condition where no participant has an incentive to change behavior.

Spillovers

Economic events in one context that have effects on a third party or in a different context, often external to the initial economic activity.

Marginal Cost

The additional cost incurred by producing one extra unit of a good or service.