The Palm City office needs to document this banking change: new bank signer after a manager leaves. Which record best supports the file?
Correct Answer
D) bank signature update
Bank authority changes should be documented with authorization, limits, and effective dates.
Why This Is the Correct Answer
Bank authority changes should be documented with authorization, limits, and effective dates.
Why the Other Options Are Wrong
Option A: petty cash envelope
petty cash envelope puts the item in the wrong financial bucket, timing, base, or comparison for bank authority.
Option B: bid tab schedule
bid tab schedule puts the item in the wrong financial bucket, timing, base, or comparison for bank authority.
Option C: insurance claim memo
insurance claim memo puts the item in the wrong financial bucket, timing, base, or comparison for bank authority.
Memory Technique
Changes and documented point to different ledger roads for Owner Reviews.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Banking Authority Records; use the stated business record or control rule to verify the answer.
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