Duties in the Expenditure Cycle Should Be Properly Segregated to Promote

question 79

Multiple Choice

Duties in the expenditure cycle should be properly segregated to promote internal control.This means that the authorization function is performed by __________,the recording function is performed by __________,and the cash disbursement function is performed by the __________.

• A)accounts payable; purchasing; cashier
• B)purchasing; accounts payable; cashier
• C)purchasing; cashier; accounts payable
• D)purchasing; accounts payable; treasurer

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Definitions:

Cartels

Formal agreements among competing firms in the same industry aimed at controlling production, fixing prices, and restricting competition.

Production

The procedure involved in producing goods and services.

Federal Budget Deficit

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or use of reserves.

Sherman Antitrust Act

A United States antitrust law that outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade.