Control over cash disbursements is generally more effective when
A)all bills are paid in cash.
B)disbursements are made by the accounts payable subsidiary clerk.
C)payments are made by cheque or electronic funds transfer.
D)all purchases are made on credit.

Question

Quizplus · Accepted Answer

Payments made by cheque or electronic funds transfer allow for better tracking, auditing, and control over cash disbursements compared to paying bills in cash or making all purchases on credit. This method also reduces the risk of theft and ensures a clear, documented trail of transactions.

Control Over Cash Disbursements Is Generally More Effective When