An Employee Authorized to Sign Checks Should Not Record

question 55

Multiple Choice

An employee authorized to sign checks should not record

• A) owner cash contributions.
• B) mail receipts.
• C) cash disbursement transactions.
• D) sales transactions.

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Definitions:

Standard Cost

The planned cost for a unit of product or service, serving as a benchmark for evaluating performance and setting budgets.

Net Operating Income

The profit a company makes after deducting its operating expenses, without accounting for taxes and interest.

Selling And Administrative Expenses

These are expenses that are not directly tied to the production of goods or services, including costs such as salaries of sales personnel and marketing expenses.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of materials, based on budgeted prices.