Which of the Following Should Sign Checks Under Conditions of Effective

question 19

Multiple Choice

Which of the following should sign checks under conditions of effective internal control?

• A)Treasurer
• B)Purchasing agent
• C)Accounts payable clerk
• D)Person preparing the checks

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Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Imperfect Information

A situation in which all parties in a transaction do not have the same information, leading to inefficiencies in markets.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns on investment.

Truth-in-Advertising

Legal requirements and ethical guidelines that ensure advertising is not misleading or false, protecting consumers.