For Good Controls Over Cash Payments,the Person Who Orders Goods

question 152

True/False

For good controls over cash payments,the person who orders goods from a supplier should always be different from the person who approves the payment.

---

Definitions:

Due Date

The final day an invoice is to be paid. After that day the buyer may be charged interest. Also, the date by which a loan is to be repaid.

Remittance

Amount that a buyer actually pays after deducting a cash discount.

Discount Period

A certain number of days after the invoice date, during which a buyer may receive a cash discount. The time between a note’s discount date and its maturity date.

Trade Discount

A reduction in price given by a seller to a buyer, usually based on the quantity purchased or agreed upon terms, not reflected in the invoice amount.