Which Internal Control Activity Is Followed When the Work of One

question 48

Multiple Choice

Which internal control activity is followed when the work of one department acts as a check on the work of another?

• A) Segregation of duties
• B) Physical security
• C) Independent verification
• D) Establishing responsibility

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Definitions:

Minimum Cash Balance

The lowest amount of cash a business determines it needs on hand to meet its operational requirements.

Preliminary Cash Balance

An initial estimate of a company's cash balance at the beginning of a financial period, before any adjustments are made.

Cash Receipts

The total amount of cash collected by a business during a given period, including all sources of income.

Budgeted Income Statement

A financial statement that forecasts the revenue, expenses, and net income for a future period, based on management's expectations.