An Effective Control Activity Results When at Least Two Individuals

question 32

True/False

An effective control activity results when at least two individuals are assigned to one cash drawer so that each can serve as check on the other.

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Definitions:

Planning Budget

A budget prepared before a period begins, outlining the financial plans and the expected outcomes for that period.

Total Expenses

The aggregate amount of all costs and expenses, both fixed and variable, incurred by a business, organization, or individual.

Shipping Container

A large standard-sized metal box used for transporting goods by sea, land, or air.

Static Budget

A budget based on a fixed set of assumptions and output levels, not adjusting for changes in business activity.