Which of the Following Is a Sound Internal Control Procedure

question 168

Multiple Choice

Which of the following is a sound internal control procedure for cash disbursements?

• A)Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery.
• B)Using presigned checks to facilitate payment within the cash discount period.
• C)Comparing purchase requisitions,purchase orders,receiving reports,and invoices.
• D)Requiring the signature of the purchasing department supervisor on checks.

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Definitions:

Rental Revenue

Income received from leasing out properties or equipment to others.

Capital Lease

A lease agreement considered similar to a purchase of the leased asset, showing both an asset and a liability on the lessee's balance sheet.

Contingent Rentals

Rental payments that are not fixed or determined upfront but depend on the occurrence of a future event or condition.

Accumulated Amortization

The total amount of amortization expense that has been applied to a fixed asset since its purchase.