Which of the Following Is Not a Major Control Feature

question 64

Multiple Choice

Which of the following is not a major control feature of the cash disbursements business process?

• A) Use of a voucher system
• B) Use of an imprest fund
• C) An independent bank reconciliation
• D) Separation of approval from actual payment

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust for bad debts.

Direct Write-Off Method

An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Direct Write-Off Method

An accounting method used to recognize bad debts only when specific receivables are deemed uncollectible, without maintaining an allowance account.