Daylight Corporation's Organization Chart Provides for a Controller and an Information

question 13

Multiple Choice

Daylight Corporation's organization chart provides for a controller and an information processing manager, both of whom report to the financial vice-president.Internal control would not be strengthened by:

• A)Assigning the programming and operating of the computer to an independent control group which reports to the controller
• B)Providing for maintenance of input data controls by an independent control group which reports to the controller
• C)Rotating periodically among machine operators the assignments of individual application runs
• D)Providing for review and distribution of computer output by an independent control group which reports to the controller

Comprehend the classification and reporting of fund balances in governmental funds.

Recognize the different fiduciary funds and their usage in governmental accounting.

Understand the implications of specific decisions (e.g., city council decisions) on fund balance designations.

Identify the entities responsible for establishing accounting principles for governmental entities and their origins.

---

Definitions:

Agency Relationship

A legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Genetically Modified Seed

A seed that has been altered using genetic engineering techniques to possess certain traits such as pest resistance or increased nutrient value.

Purchasing Agent

An individual or company responsible for buying goods and services for another entity.

Written Authority

is an officially documented permission granted to an individual or entity to act on behalf of another.