A Large Retail Enterprise Has Established a Policy That Requires

question 93

Multiple Choice

A large retail enterprise has established a policy that requires the paymaster to deliver all unclaimed payroll checks to the internal audit department at the end of each payroll distribution day. This policy was most likely adopted to

• A)ensure that employees who were absent on a payroll distribution day are not paid for that day.
• B)prevent the paymaster from cashing checks that are unclaimed for several weeks.
• C)prevent a bona fide employee's check from being claimed by another employee.
• D)detect any fictitious employee who may have been placed on the payroll.

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Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time, reflecting its consumption, expiration, or obsolescence.

Accounting Period

The time period covered by the financial statements.

Maturity Value

The amount payable to an investor at a security's maturity date, including both the principal and any final interest payments.

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.