Requiring Two Signatures on Any Check in Excess of $10,000

question 11

Multiple Choice

Requiring two signatures on any check in excess of $10,000 is an example of which type of control?

• A)Input control.
• B)Preventive control.
• C)Detective control.
• D)Processing control.

---

Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer it to another holder.

Consideration

In contract law, something of value given by one party in exchange for something of value from another party, forming the basis for a contract.

Binding Contract

An agreement between parties that is legally enforceable in a court of law.

Commitment

The state or quality of being dedicated to a cause, activity, or undertaking.