Which of the Following Statements Accurately Describes a Fidelity Bond

question 13

Multiple Choice

Which of the following statements accurately describes a fidelity bond?

• A)Procedures to provide reasonable assurance that the objectives of a company are accomplished.
• B)Proper procedures for processing transactions.
• C)Insurance that the company buys to protect itself from loss due to employee dishonesty.
• D)Guidelines or policies that limit the actions of different levels of management.

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Definitions:

Weekly

Once per week.

Biweekly Gross Pay

The total amount of earnings paid every two weeks before any deductions are applied.

Annual Salary

The total earnings of an individual from their job before taxes and other deductions, calculated on a yearly basis.

Merchandise

Goods that are bought and sold in business.