Which of the Following Statements Is Correct

question 158

Multiple Choice

Which of the following statements is correct?

• A)Due to its liquid nature, cash is the easiest asset to steal.
• B)A good system of internal control will ensure that employees will not be able to steal cash.
• C)It takes two or more employees working together to be able to steal cash.
• D)All of these answer choices are correct.

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Definitions:

Administrative Expenses

Expenses that relate to the general operation of a company and do not directly tie to production activities, such as office supplies and salaries of administrative personnel.

Direct Labor

The labor costs of workers who are directly involved in manufacturing a product or providing a service.

Overhead Costs

Overhead costs refer to ongoing expenses related to the operation of a business that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Work in Process

Partially finished goods that are still in the production process at the end of an accounting period.