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:

Exchange Gains/Losses

The difference in value realized from the exchange of currency that can either be a profit (gain) or a loss due to fluctuating exchange rates.

Exchange Gains/Losses

The financial result stemming from the fluctuation in exchange rates affecting the value of foreign currency transactions and holdings.

Strengthening Currency

A currency that is increasing in value compared to another currency, often due to improved economic indicators or increased demand.

Exchange Gain

A financial gain resulting from a favorable change in exchange rates affecting the value of foreign-currency-denominated assets or liabilities.