Which of the Following Control Plans Transfers the Exact Amount

question 18

Multiple Choice

Which of the following control plans transfers the exact amount of funds necessary to cover payroll checks and related expenses?

• A)approve attendance time data and job time data
• B)distribute labor costs
• C)independent paycheck distribution
• D)use payroll clearing account

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Definitions:

Bailment

The legal relationship established when possession, but not ownership, of personal property is transferred from one person to another under an agreement.

Bailee Compensation

The payment made to a bailee for the service of temporarily holding or storing the bailor's property.

Gratuitous Bailment

A legal relationship where one party, the bailor, temporarily transfers possession of an item to another, the bailee, without expectation of payment or benefit.

Bailee's Lien

The right of a bailee to retain possession of a bailor's property as security for unpaid charges related to the property.