MsGreene Has Worked for Ambleside Inc

question 113

Multiple Choice

Ms.Greene has worked for Ambleside Inc.for 20 years without taking a vacation.An internal control activity that would address this situation would be

• A)human resource controls.
• B)authorization of transactions and activities.
• C)physical controls.
• D)documentation.

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Definitions:

Sum-Of-Years' Digits

A depreciation method that accelerates the expense recognition, using a decreasing fraction of years remaining over the sum of the years' digits.

Double-Declining Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly in its early years.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.