In the Expenditure Cycle,good Control Dictates That Expenditures Should Be

question 106

Multiple Choice

In the expenditure cycle,good control dictates that expenditures should be paid by check.This may not be feasible when minor purchases are made.To facilitate quick payment for minor purchases,a(n) ________ should be set up and maintained using ________.

• A)special bank account;disbursement vouchers
• B)imprest fund;vouchers
• C)cash box;small denomination bills
• D)petty cash fund;procurement cards

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.

Shares Reacquired

Shares that were previously issued and have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Dividend Declared

The action by a company's board of directors to distribute a portion of the earnings to shareholders, specified as an amount per share.

Originally Issued

Pertains to securities or stocks that have been made available for sale to the public for the first time.