In the Performance of Which Transaction(s) Does Segregation of Duties

question 11

Multiple Choice

In the performance of which transaction(s) does segregation of duties serve as an important internal control?

• A)Cash receipts, not credit sales
• B)Credit sales, not cash receipts
• C)Both cash receipts and credit sales
• D)None of these answer choices are correct.

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Definitions:

Gain-Sharing Plan

A type of incentive plan that gives employees a share of the company's saved costs or increased profits, typically resulting from their collective efforts to improve performance.

Team-Based Pay

A compensation strategy where employee earnings are linked to the performance of their team as a whole rather than individual performance.

Operational Outcomes

The results or outputs stemming from the operational activities of an organization, which can include profits, efficiency, and product quality among other factors.

Financial Outcomes

The monetary results or consequences of business activities, including profits, losses, revenue, and expenses.