Which of the Following Statements Is Most Correct with Respect

question 46

Multiple Choice

Which of the following statements is most correct with respect to separation of duties?

• A)A person who has temporary or permanent custody of an asset should account for that asset.
• B)Employees who authorize transactions should not have custody of related assets.
• C)Employees who open cash receipts should record the amounts in the subsidiary ledgers.
• D)Employees who authorize transactions should have recording responsibility for these transactions.

---

Definitions:

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a given period.

Financial Account

A component of a country's balance of payments that records investments and transactions of financial assets between residents and non-residents.

Positive Number

A number greater than zero, indicating a quantity or value that is above the neutral or zero point on a scale.

Appreciation

An increase in the value of an asset or currency over time, often due to economic or market factors.