Which of the Following Is Not an Important Principle for the Control

question 59

Multiple Choice

Which of the following is not an important principle for the control of cash payments?

• A) Only senior staff should have the authority to approve invoices for payment.
• B) Cheques should be written out promptly even if the invoice is not yet provided.
• C) Random checks on the balance of the petty cash fund.
• D) Employees who receive delivery of the goods should not be involved in recording the invoices into the accounting system.

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Definitions:

Budget Constraints

A financial restriction that limits the amount of money that can be spent on different categories of goods and services.

Optimum

The most favorable condition or level for growth, reproduction, or success.

Substitutes

Two goods for which an increase in the price of one leads to an increase in the demand for the other.

Complements

Two goods for which an increase in the price of one leads to a decrease in the demand for the other.