All of the Following Are Parts of the Internal Control

question 118

Multiple Choice

All of the following are parts of the internal control characteristic referred to as separation of duties except separation of:

• A)external auditors from accounting.
• B)duties within the accounting function.
• C)the custody of assets from accounting for those assets.
• D)operations from accounting.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.

Insurance Expense

The amount a company spends on insurance policies to cover various risks, recorded as an expense in the accounting period in which it is incurred.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.