Payment by Check Is an Important Internal Control Since

question 149

Multiple Choice

Payment by check is an important internal control since:

• A)the check provides a record of the payment.
• B)the check must be signed by an authorized official who should study the evidence supporting the payment.
• C)all checks must be approved by the bank's internal audit department before they are paid.
• D)both A and B are true.

---

Definitions:

Financial Plan

A strategic roadmap designed to manage an individual's or an entity's current financial situation and future financial goals.

Sales Growth Expectations

Anticipations or forecasts about the future increase in sales revenue over a specified period.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its equity and while maintaining its existing debt-equity ratio.

Debt-Equity Ratio

A calculation to determine a business's leverage by dividing its liabilities by the equity of its stockholders.