Which Internal Control Activity Is Followed When the Work of One

question 31

Multiple Choice

Which internal control activity is followed when the work of one department acts as a check on the work of another?

• A)segregation of duties
• B)safeguarding of assets and records
• C)checks on recorded amounts
• D)clearly defined authority and responsibility

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Total Surplus

The sum of consumer and producer surplus; represents the total net benefit to society from the production and consumption of a good or service.

Deadweight Loss

Economic efficiency is lost when the balance for a good or service is either not met or unattainable.

Tariff

A tax imposed on imported goods and services to regulate trade, increase government revenue, or protect domestic industries.