Sebastian Wrote a Check to Pay a Supplier's Invoice

question 41

Multiple Choice

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name.
-The internal controls mentioned in the preceding scenario are:

• A) The dual signatures on the check and the file.
• B) The bank reconciliation and the file.
• C) The dual signatures on the check and the bank reconciliation.
• D) The supplier's invoice and the bank reconciliation.

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Definitions:

Taxpayer

An individual or business entity that is obligated to make payments to governmental authorities in the form of taxes.

Tax Tables

Charts or tables provided by tax authorities that display tax rates and brackets for calculating taxes owed based on income levels.

Taxable Income

The amount of income that is subject to tax, after all deductions and exemptions are taken into account.

Intervals

Periods of time between events; in finance, it may refer to the frequency with which interest is applied or compounded.