Choose the Proper Category of Internal Control Activities That Best

question 179

Multiple Choice

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list.
-Checks on recorded amounts

• A)One employee or department should verify the work of another.
• B)Specific approval is given by management for the performance of activities.
• C)Accounting and cash collections should be properly separated.
• D)Blank checks should be stored in a locked location.
• E)Initial entry into the accounting system should be from a consistent source with complete information.

---

Definitions:

Minimum Required Return

The minimum required return is the lowest acceptable profit or gain on an investment, factoring in the risk and opportunity cost.

Operating Income

Income generated from regular business operations, excluding costs of goods sold and other operating expenses.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments due on any form of debt.