Which of the Following Most Likely Would Be an Internal

question 15

Multiple Choice

Which of the following most likely would be an internal control procedure designed to detect errors and fraud concerning the custody of inventory?

• A)Periodic reconciliation of work in process with job cost sheets.
• B)Segregation of functions between general accounting and cost accounting.
• C)Independent comparisons of finished goods records with counts of goods on hand.
• D)Approval of inventory journal entries by the storekeeper.

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Definitions:

Managerial Options

Financial incentives given to managers and executives, often in the form of stock options, to align their interests with those of the shareholders by motivating them to enhance the company's value.

Real Options

The flexibility to make strategic business decisions, such as deferring, abandoning, expanding, or contracting a project based on new information or market changes.

Exercised Option

An exercised option refers to the act of utilizing the right to buy or sell the underlying asset as specified in the options contract.

Terminating Project

Refers to the process of concluding or ending a project before its natural completion, often due to failure to meet objectives, financial constraints, or external factors.