An Imprest Payroll Account That Has a Significant Balance May

question 13

Multiple Choice

An imprest payroll account that has a significant balance may indicate the presence of:

• A)employees have not yet deposited or cashed payroll checks.
• B)fraudulent transfer of funds by the company.
• C)lack of controls over payroll distribution.
• D)the company is overpaying its employees.

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Definitions:

Financing Activities

Transactions with creditors or investors used to fund either company operations or expansions. These include issuing bonds, obtaining loans, repaying debt, and issuing or buying back shares.

Cash Dividends

Payments made in cash by a corporation to its shareholder members from its earnings.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholders, representing a distribution of the company's earnings.

Balance Sheet

A financial outline that displays a company's assets, financial obligations, and the ownership interest of shareholders at a determined date.