Which One of the Following Statements Is Incorrect

question 40

Multiple Choice

Which one of the following statements is incorrect?

• A) The accounting function should be separated from the custodianship of a company's assets.
• B) Certain clerical personnel in a company should be rotated among various jobs.
• C) The responsibility of receiving merchandise and paying for it usually should be given to one person.
• D) A company's personnel should be given well-defined responsibilities.

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Definitions:

Lease Contract

A legal agreement between two parties where one party (lessor) allows another (lessee) to use an asset for a specific period in exchange for payment.

Future Market Value

The anticipated value of an asset at a future date, based on projections or market trends.

Transferring Uncertainty

The process of moving the risk of a particular outcome from one party to another, often through the use of insurance or hedging techniques.

Obsolescence Concerns

Worries related to a product or system becoming obsolete or outdated, leading to a potential decrease in its value or utility.