Controls Specific to the Recording of Cash Payments Include Which

question 37

Multiple Choice

Controls specific to the recording of cash payments include which of the following?

• A) an independent check by the accounting supervisor of the agreement of the amounts authorized and posted to accounts payable with the cheque summary received from the general accounts department
• B) an independent check of the agreement of the total of cheques issued with a batch total of the vouchers processed for payment.
• C) limits on access to blank cheques
• D) all of the above

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Definitions:

Partnership Interest

An ownership share in a partnership that represents a portion of the entity's assets and income.

Depreciate

To reduce the recorded value of an asset in financial accounts over its useful life to reflect wear and tear, obsolescence, or decline in value.

Holding Period

The length of time an investment is held before being sold, which can affect the capital gains tax owed upon sale.

FMV

Fair Market Value, the price at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell.