An Example of an Internal Control Weakness Is to Assign

question 29

Multiple Choice

An example of an internal control weakness is to assign the human resource department responsibility for:

• A)Maintaining time cards.
• B)Hiring personnel.
• C)Authorizing deductions from pay.
• D)Interviewing employees for jobs.

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Definitions:

Margin of Safety Ratio

A financial ratio that measures the difference between actual sales and break-even sales, used to assess a company's financial risk.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.

Actual Sales

This refers to the actual revenue generated from the sale of products or services, as opposed to projected sales or forecasts.

Break-even Point

The point at which total revenues equal total costs, meaning the company neither makes a profit nor incurs a loss.