Allowing Only the Treasurer to Sign Checks Is an Example

question 227

Multiple Choice

Allowing only the treasurer to sign checks is an example of

• A) documentation procedures.
• B) segregation of duties.
• C) other controls.
• D) establishment of responsibility.

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Definitions:

Annual Dividend

The total amount of dividend payments declared by a company in one year, distributed to shareholders from its earnings.

Stock Price

The cost of purchasing a share of a company on the stock market.

Red Herring

A preliminary prospectus filed by a company with details about its operations and financials, intended to gauge investor interest before a final prospectus is issued.

SEC

Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock markets.