A Company Has a Policy That the Accounting Department Personnel

question 49

Multiple Choice

A company has a policy that the accounting department personnel who keep records of inventory must never actually be the ones who have custody of the inventory. This is an example of which type of general accounting control?

• A) Segregation of duties
• B) Authorization procedures
• C) Documentation and record-keeping
• D) Physical control over assets and records

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Definitions:

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Quantity Supplied

The quantity of a product or service that sellers are ready and capable of offering for sale at a specific price during a certain timeframe.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.