Payments by Check Is an Important Internal Control for All

question 13

Multiple Choice

Payments by check is an important internal control for all of the following reasons EXCEPT for:

• A) the checks provided a record of the payment.
• B) the check must be signed by an authorized official.
• C) all payments are made via a lock-box system.
• D) before signing the check, the authorized official should study the evidence supporting the payment.

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Definitions:

Financial Position

A rephrased definition for Statement of Financial Position; it outlines a company's financial condition by showing its assets, liabilities, and equity at a certain date.

Current Assets

Resources that are anticipated to be turned into cash, sold off, or used up within one year or throughout the usual business cycle, whichever timeframe extends further.

Total Dollar Amount

The full monetary value or total sum of all items or transactions in question.