The Internal Control Activity Requiring That the Manager Approves Payroll

question 119

Multiple Choice

The internal control activity requiring that the manager approves payroll prior to signing paycheck is intended to minimize the risk of:

• A)Omitted paychecks
• B)Incorrect amounts
• C)Fictitious employee
• D)Stolen paychecks

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Definitions:

Simple Interest Rate

An interest rate calculation method that is based solely on the original principal amount and does not factor in compounded interest.

Loan

A sum of money that is borrowed, often from a financial institution, which is expected to be paid back with interest.

Interest

The payment required for obtaining the service of borrowing funds, typically denoted as a yearly percentage rate.

Interest Rate

The proportion of interest charged to a borrower by a lender for the use of borrowed money.