Which of the Following Is Not a Major Control Risk

question 35

Multiple Choice

Which of the following is not a major control risk in the payroll cycle?

• A)Paying fictitious "employees"
• B)Overpaying for time or production
• C)Losing employees to competitors.
• D)Incorrect accounting for costs or expenses

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Definitions:

Conversion Premium

The extra amount a investor pays over the convertible security's current value to convert it into shares of stock.

Conversion Price

The conversion price is the predetermined price at which a convertible bond or preferred stock can be converted into common shares of the issuing company.

Conversion Ratio

The number of shares an investor receives upon converting a convertible security, like convertible bonds or preferred stock, into common stock.

Conversion Value

The worth of a convertible security if it were converted into the underlying stock at the current market price.