Which of the following describes the best physical control(s) over cash disbursements?
A) All disbursements to vendors over $50 are made with prenumbered checks.
B) Cash can be disbursed to vendors when approved by the purchasing manager.
C) Access to inventory is limited to authorized personnel only.
D) All of the above are good physical controls over cash disbursements.

Question

Quizplus · Accepted Answer

The use of prenumbered checks ensures that each payment is recorded and accounted for, reducing the risk of fraudulent or unauthorized disbursements. Option B does not provide sufficient control over cash disbursements as approval by a single individual may be insufficient to prevent fraud or errors. Option C is unrelated to cash disbursements and instead concerns inventory control.

Which of the Following Describes the Best Physical Control(s) Over