Which of the Following Would NOT Represent Good Controls Over

question 22

Multiple Choice

Which of the following would NOT represent good controls over cash disbursements?

• A)Make all disbursements,other than very small ones,by check,debit card,or credit card.
• B)Require only one signature for checks,especially larger ones.
• C)Authorize all expenditures before purchase and verify the accuracy of the purchase itself.
• D)The employee who authorizes payment should not also be the employee who prepares the check.

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Definitions:

Equilibrium

An equilibrium state in the market where supply meets demand, stabilizing prices as a consequence.

Aggregate Supply

Aggregate supply constitutes the total supply of goods and services produced within an economy at a given overall price level in a specified time period.

Aggregate Demand

Refers to the total demand for goods and services within an economy at a given overall price level and in a given time period.

Full Employment Level

A situation in which all available labor resources are being used in the most economically efficient way, essentially meaning that unemployment is at the lowest possible level without causing inflation.