Which of the Following Controls Would Be Most Effective in Ensuring

question 63

Multiple Choice

Which of the following controls would be most effective in ensuring that the proper custody of assets in the investing cycle is maintained?

• A)Direct access to securities in the safety deposit box is limited to only one corporate officer.
• B)Personnel who post investment transactions to the general ledger are not permitted to update the investment subsidiary ledger.
• C)The purchase and sale of investments are executed on the specific authorization of the board of directors.
• D)Independent personnel periodically compare the recorded balances in the investment subsidiary ledger with the contents of the safety deposit box.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, indicating the total benefits received by both producers and consumers in a market.

Equilibrium Price

The trading value at which the supply of goods meets the consumers' demand for these goods.

Total Surplus

The sum of consumer and producer surplus, measuring the total net benefit to society from trading a good or service.

Supply

The total amount of a specific good or service that is available to consumers, typically influenced by the price level, production costs, and other factors.