Which of the Following Client Internal Control Activities Is Not

question 44

Multiple Choice

Which of the following client internal control activities is not usually performed in the treasurer's department?

• A)Verifying the accuracy of checks and vouchers.
• B)Controlling the mailing of checks to vendors.
• C)Approving vendors' invoices for payment.
• D)Canceling payment vouchers when paid.

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Definitions:

Exercising Option

The act of implementing the right to buy or sell an underlying asset at a predetermined price before the option expires.

Option Contract

A financial derivative contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specified time frame.

Underlying Asset

The financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.

Conversion Price

The predetermined price at which convertible securities can be exchanged for another form, typically common stock.