Asked by Elizabeth Offer on Jul 17, 2024
Verified
An application of good internal control over cash disbursements is
A) following payment the approved invoice should be stamped PAID.
B) blank checks should be stored in the treasurer's desk.
C) each check should be compared with the approved invoice after the check is issued.
D) check signers should record the cash disbursements.
Cash Disbursements
The outflow of cash for expenses, investments, and other payments during a given period.
Internal Control
Processes designed to provide reasonable assurance regarding the achievement of various objectives such as the effectiveness and efficiency of operations.
- Analyze and apply internal control principles to cash disbursement and receipt processes.
Verified Answer
SB
Suraj BudhaprithiJul 22, 2024
Final Answer :
A
Explanation :
Stamping the approved invoice as "PAID" after payment is made is a good internal control practice. It helps prevent duplicate payments and ensures that each invoice is only paid once.
Learning Objectives
- Analyze and apply internal control principles to cash disbursement and receipt processes.
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