A System of Internal Accounting Control Normally Would Include Procedures

question 85

Multiple Choice

A system of internal accounting control normally would include procedures that are designed to provide reasonable assurance that:

• A) transactions are executed in accordance with management's general or specific authorisation.
• B) employees act with integrity when performing their assigned tasks.
• C) unusual transactions are accurately recorded.
• D) collusive activities would be detected by segregation of employee duties.

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Definitions:

Capital

Resources or assets that are used by a business to generate income and wealth over time, often referred to as the net worth of the business.

Revenue

The overall income obtained through the sales of products or services, which are integral to a company's principal operations.

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to account for its decrease in value.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting its loss of value over time.