Conditions That Warrant the Need for Strong Controls Relating to the Payroll

question 4

Multiple Choice

Conditions that warrant the need for strong controls relating to the payroll process include all of the following EXCEPT:

• A)Irregular pay schedules
• B)Complex withholding arrangements
• C)Frequent changes in pay rates
• D)Low employee turnover

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Definitions:

Coupon

The percentage rate of interest a bond yields annually, based on its principal amount.

Current Yield

The annual return of an investment expressed as a percentage of its current price.

Rate of Return

The gain or loss on an investment over a specified period, proportionally expressed as a percentage of the investment's initial cost.

Capital Gains

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.