Which of the Following Is NOT a Significant Feature of a System

question 17

Multiple Choice

Which of the following is NOT a significant feature of a system of internal control over cash?

• A) Two staff members should sign cheques.
• B) The person who does bank reconciliations should not be the cashier.
• C) The staff member responsible for approving invoices for payment should sign cheques.
• D) Bank reconciliation statements are prepared at regular intervals.

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Definitions:

Carrying Value

The book value of assets and liabilities, calculated as the original cost minus accumulated depreciation or amortization and impairment.

Premium on Bonds Payable

The amount by which the bond's issue price exceeds its face value, reflecting the cost of issuing debt at an interest rate lower than the market rate.

Discount on Bonds Payable

The difference between the par (or face) value of a bond and its lower issuing price, representing an additional cost of borrowing for the issuer.

Straight-Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.