An Employee at a Mid-Size Organization Argues That She Has

question 112

Multiple Choice

An employee at a mid-size organization argues that she has made more sales in a particular quarter than another employee. Which of the following features will the organization's control system possess in order to confirm this claim?

• A) Participation
• B) Flexibility
• C) Appropriate focus
• D) High standards
• E) Verification procedures

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Definitions:

Operating Activities

The day-to-day tasks involved in managing a business which include production, sales, and the purchase of inventory.

Cash Dividends

A distribution of a company's earnings to shareholders in the form of cash payments.

Direct Method

A way of preparing a cash flow statement where actual cash inflows and outflows from operational activities are listed directly.

Operating Activities

Aspects of a business related to its core operations, including production, sales, and delivery of its products and services, as reflected in cash flows within the operating section of the cash flow statement.