The Control Principle Related to Not Having the Same Person

question 2

Multiple Choice

The control principle related to not having the same person authorize and pay for goods is known as

• A)establishment of responsibility.
• B)independent internal verification.
• C)separation of duties.
• D)rotation of duties.

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Definitions:

Personally Insolvent

A situation where an individual cannot meet their debt obligations as they become due because their liabilities exceed their assets.

Liquidation Expenses

Costs associated with winding up a company's business operations and distributing its assets.

Capital Account Balances

Reflects the total amount of capital a member or shareholder has contributed or accumulated within a company.

Noncash Assets

Assets owned by a business that are not in the form of cash but can be converted into cash within a year, including inventory, real estate, and investments.