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

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Definitions:

Cost of Equity

The cost of equity refers to the return a company must offer investors to compensate for the risk they undertake by investing in the company's equity.

Dividend Yield

A finance ratio illustrating the yearly dividends paid by a company in comparison to its stock price.

Capital Gains Yield

The dividend growth rate or the rate at which the value of an investment grows.

Cost of Capital

The rate of return that a company must pay to its creditors and shareholders for using their capital.