Which of the Following Is a Test of Controls

question 32

Multiple Choice

Which of the following is a test of controls?

• A)reviewing the payroll journal,general ledger,and payroll earnings records for large or unusual amounts
• B)examining time cards for indication of supervisor approval
• C)comparing cancelled cheques with payroll journal for name,amount,and date
• D)examining cancelled cheques for proper endorsement

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues in a business, indicating a financial loss over a specific period.

Salary Allowances

Pre-determined sums paid to employees above their regular salary to cover specific needs or expenses, such as travel or housing.

Stated Ratios

These are specific proportions or percentages explicitly mentioned or defined, typically used in financial analysis to assess a company's performance.

Salaries

Payments made to employees for their services over a specified period, often monthly or biweekly.