Which of the Following Represents Good Internal Control Procedures Concerning

question 74

Multiple Choice

Which of the following represents good internal control procedures concerning cash payments?

• A) Allow anyone to access petty cash.
• B) Make sure that all cash payments are made by check (with the exception of petty cash).
• C) Assign an employee responsibility of preparing the checks, signing the checks, and preparing the bank reconciliation.
• D) Keep check supplies available to all employees.

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Definitions:

Prepaid Expenses

Costs paid in advance of their use, such as insurance or rent, which are recorded as assets on a balance sheet until they are actually incurred.

Recorded

The process of documenting financial transactions in the accounting records of a business.

Adjusted Trial Balance

A trial balance taken after adjustments have been made, used for preparing financial statements.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received.