In the Finance and Investment Cycle,which of the Following Controls

question 36

Multiple Choice

In the finance and investment cycle,which of the following controls would be most effective in ensuring that proper custody of assets has been maintained?

• A)Direct access to securities in the safety deposit box is limited to only one corporate officer.
• B)Personnel who post investment transactions to the general ledger are not permitted to update the investment subsidiary ledger.
• C)The purchase and sale of investments are executed on the specific authorization of the board of directors.
• D)The recorded balances in the investment subsidiary ledger are periodically compared with the contents of the safety deposit box by independent personnel.

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Definitions:

Functional Areas

Departments or teams within a business that focus on specific functions or activities like marketing, finance, operations, or human resources, contributing to the organization's overall goals.

Democratic Leaders

Leaders who promote the participation of all members in decision-making processes, valuing collaboration and consensus.

Subordinates

Individuals who work under the supervision of someone else within an organization, typically reporting to a manager or supervisor.

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a specific objective.