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.

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Definitions:

Initial Contribution

The initial investment or capital put into a business venture or project by its founders or investors.

Equipment

Tangible assets used in the operation of a business, such as machinery, computers, and vehicles, which are used over a period of time and subject to depreciation.

Cash

Money in the form of currency that can be used immediately for transactions, including coins, currency notes, and money in bank accounts.

Gain On Equipment

Profit realized from the sale of equipment that is more than its book value.