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:

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission or payment.

Rival

An entity competing against another in the same market, striving for a greater share of assets, customers, or recognition.

Nonexcludable

A property of a good where it is not possible to prevent individuals from consuming the good, regardless of whether they have paid for it.