Select the Correct Statement from the Following

question 23

Multiple Choice

Select the correct statement from the following.

• A)General ledger employees should not have custody of any assets that they record in the general ledger.
• B)General ledger employees should never be given responsibility for authorizing any journal vouchers.
• C)General ledger employees should only record journal vouchers that have been authorized by the appropriate manager.
• D)All of the above, A, B, and C, are correct.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company. This includes both the materials and labor costs.

General/Administrative Expenses

Overhead or operational costs not directly tied to producing goods or services, such as salaries of administrative staff.

Full-Capacity Level

The maximum level of output that a company can sustain over a period of time without incurring additional costs.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.