Which of the Following Controls Prevents Error and Helps to Ensure

question 65

Multiple Choice

Which of the following controls prevents error and helps to ensure that only authorized wages are paid by the payroll service provider?

• A)duplicate signatures required on payments to the Receiver General
• B)use of an imprest payroll account for the payment of all payroll payments
• C)independent approval of the payroll journal prior to payroll payment release
• D)reconciliation of the payroll imprest bank account on a timely basis

---

Definitions:

Sales

The total income generated from goods or services sold by a company before any costs or expenses are deducted.

Stockholders' Equity

The residual interest or ownership of a company's shareholders after all liabilities have been deducted from total assets.

Net Operating Income

The income generated from normal business operations after subtracting operating expenses from operating revenues but before taxes and interest.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or product, aiding in profitability analysis.