Which One of the Following Situations Reflects a Weak Internal

question 162

Multiple Choice

Which one of the following situations reflects a weak internal control system?

• A) All employees are well supervised.
• B) A single employee is responsible for comparing a receiving report to an invoice.
• C) All employees must take their vacations.
• D) A single employee is responsible for collecting and recording of cash.

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Definitions:

Capitalist Income

The total earnings received by capital owners in an economy, including profits, rents, interest, and dividends.

Corporate Profits

The earnings of a corporation after all expenses have been deducted from revenues, indicating the financial success of the company.

Resource Suppliers

Entities or individuals that provide essential inputs or resources required for production processes across various industries.

Insurable Risk

A risk that meets the criteria for insurance coverage, typically being unforeseeable, accidental, and quantifiable in terms of loss.