Which of the Following Internal Control Tests Would Help to Assess

question 66

Multiple Choice

Which of the following internal control tests would help to assess whether payroll transactions were recorded on the correct dates?

• A)Compare cancelled cheques with payroll journal for name,amount,and date.
• B)Compare date on cheque with date the cheque cleared the bank.
• C)Compare cancelled cheques with personnel records.
• D)Recompute hours worked from pay records.

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Definitions:

Dividend Payments

Distributions of a portion of a company's earnings to its shareholders, typically in the form of cash or additional stock.

Borrowed Money

Funds that have been loaned to an entity and must be repaid to the lender, often with interest, at a future date.

Balance Sheet Equation

The fundamental accounting equation representing the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and other investments.