Ways in Which a Company Can Limit Access to Only

question 165

Multiple Choice

Ways in which a company can limit access to only those persons or departments that have custodial responsibilities include:

• A)keeping the supply of unused checks under lock and key.
• B)processing the company's cash payments through a lock-box system.
• C)allowing persons who have record-keeping responsibilities to be part of the receiving function.
• D)all of the above.

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Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount rises, thereby imposing a higher percentage rate on those with higher incomes.

Marginal Tax Rate

The rate at which the last dollar of a person’s income is taxed, indicating the impact of an additional dollar of earnings on the amount of taxes paid.