Which of the following is not an important control over notes payable?
A) There is proper authorization over the issuance of new notes payable.
B) Notes payable are issued when the business climate is favorable.
C) Adequate controls exist over repayment of interest and principal.
D) There exist proper documents and records.

Question

Quizplus · Accepted Answer

The timing of when notes payable are issued based on the business climate is not an important control. The other options listed – proper authorization, adequate controls over repayment, and proper documents and records – are all important controls over notes payable.

Which of the Following Is Not an Important Control Over