A cash disbursement system with proper internal control should include a procedure which requires all significant disbursements to be made by check

Business Feb 02, 2021

A cash disbursement system with proper internal control should include a procedure which requires all significant disbursements to be made by check. (True/False)

Expert Solution

The correct answer is True.

A cash disbursement system with proper internal control should include a procedure which requires all significant disbursements to be made by check. This statement is absolutely correct. The primary reason is that it gives the company the ability to track as to where disbursement comes from and to whom it was paid.

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