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:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as departments or products.

Acquisition

The process of acquiring control of another company or business asset through purchase, merger, or another method.

Independent Appraiser

A certified professional who provides an unbiased opinion on the value of an asset, often used in real estate transactions, without any direct connection to the buyer or seller.

Journal Entry

A record in accounting that represents each transaction with debits and credits in financial accounts.