Which of the Following Internal Control Tests Would Help to Assess

question 66

Multiple Choice

Which of the following internal control tests would help to assess whether payroll transactions were recorded on the correct dates?

• A)Compare cancelled cheques with payroll journal for name,amount,and date.
• B)Compare date on cheque with date the cheque cleared the bank.
• C)Compare cancelled cheques with personnel records.
• D)Recompute hours worked from pay records.

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Definitions:

Resource Prices

The cost of inputs used in the production of goods or services, such as raw materials, labor, and energy.

Sunk Costs

Costs that have already been incurred as a result of past decisions. They are sometimes referred to as historical costs.

Variable Costs

Expenses that fluctuate in direct proportion to the level of output or production activity.

Stock Purchase

The action of buying shares in a company, which represents a portion of ownership in that corporation.