A Strong System of Internal Control Requires That All Payments

question 43

True/False

A strong system of internal control requires that all payments be made by check except those made from a carefully controlled cash fund, such as a petty cash fund.

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Definitions:

Financing Activity

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

Operating

Pertaining to the day-to-day functions and activities necessary for a business or organization to run effectively.

Internal Users

Individuals within an organization who use its financial information to make decisions, including executives, managers, and other employees.

Management Reports

Analytical reports designed for business managers to assist in making strategic decisions.