Which Situation Indicates a Weak Internal Control Structure

question 49

Multiple Choice

Which situation indicates a weak internal control structure?

• A)the mail room clerk authorizes credit memos
• B)the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
• C)the warehouse clerk obtains a signature before releasing goods for shipment
• D)the accounts receivable clerk prepares customer statements every month

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Definitions:

Equilibrium

A state in a market where supply equals demand, conditions are stable, and there is no incentive for prices to change, leading to a balance between competing forces.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium

In economics, a state where market supply and demand balance each other, and as a result, prices become stable.

Coconuts

Tropical fruits or the hard-shelled seeds of the coconut palm, often used metaphorically in economics and game theory to represent tradable resources.