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:

Issue Price

The price at which new or existing securities are offered for sale to the public or an individual.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating potential of an investment.

Cash Dividends Per Share

A measure of the amount of cash dividends paid out to shareholders per share of common stock.

Market Price

The price point at which a service or asset is currently available for trading within a market.