Payment by Check Is an Important Internal Control Because

question 157

Multiple Choice

Payment by check is an important internal control because:

• A)the check provides a record of the payment.
• B)the check must be signed by an authorized official who should study the evidence supporting the payment.
• C)all checks must be approved by the bank's internal audit department before they are paid.
• D)A and B

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or paid out, commonly associated with bonds and loans.

Commission

Payment to an employee or to an agent for performing or helping to perform a business transaction or service.

Accrued Interest

The amount of interest that has accumulated on a loan or bond over a specific period but has not yet been paid.

Semiannually

Occurring twice a year; every six months.