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:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Supply Decrease

A situation in economics where the amount of a certain good or service that producers are willing to provide at a specific price level reduces.

Demand Decrease

A reduction in the quantity of a good or service that consumers are willing and able to purchase at various prices.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specific period.