Which of the Following Describes the Best Physical Control(s) Over

question 71

Multiple Choice

Which of the following describes the best physical control(s) over cash disbursements?

• A) All disbursements to vendors over $50 are made with prenumbered checks.
• B) Cash can be disbursed to vendors when approved by the purchasing manager.
• C) Access to inventory is limited to authorized personnel only.
• D) All of the above are good physical controls over cash disbursements.

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Definitions:

Federal Government Budget

An annual financial statement presenting the government's proposed revenues and spending for a financial year.

Servicing Debt

The process of paying interest and principal on borrowed funds, typically on a regular basis.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Publicly Held

Refers to a company owned by public investors through publicly traded shares, as opposed to being privately owned.