The Internal Control Process of Requiring an Independent Paymaster, Will

question 5

Multiple Choice

The internal control process of requiring an independent paymaster, will help to minimize the risk of:

• A)Fictitious employees
• B)Incorrect amounts
• C)Omitted paychecks
• D)Timing issues

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Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Long-term Liabilities

Obligations or debts due beyond one year or the normal operating cycle, including bonds payable, long-term leases, and pension liabilities.

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and profits or losses.