Internal Control Over a Company's Assets Should Include the Following

question 91

Multiple Choice

Internal control over a company's assets should include the following procedures:

• A)Responsibilities and duties of employees will be divided.
• B)All cash receipts will be deposited into the bank the same day they arrive.
• C)All cash payments will be made by check (except petty cash).
• D)All of these answers are correct.

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Definitions:

Repurchase Shares

A transaction in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate earnings.

Return on Debt

A measurement of a company's effectiveness in generating earnings from its debt, showing how well a company uses borrowed funds.

Cost of Equity

The return that investors expect for providing capital to a company, effectively the compensation for the risk of investing in the company.