The Most Important Type of Protective Measure for Safeguarding Assets

question 13

Multiple Choice

The most important type of protective measure for safeguarding assets and records is:

• A) adequate documentation.
• B) adequate separation of duties among personnel.
• C) the use of physical precautions.
• D) proper authorisation of transactions.

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Definitions:

Percentage Increase

A measure of how much a quantity has grown, typically expressed as a proportion of the starting value.

Balance Sheet

The financial statement of what is owned (assets), what is owed (liabilities), and the difference between the two (net worth) on a specific date.

Gross Profit

Revenue from sales or services minus the cost of goods sold, representing the preliminary profit figure before deducting operating expenses.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.