Which of the Following Policies Requires That Every Employee Be

question 27

Multiple Choice

Which of the following policies requires that every employee be able to perform the work of at least one other staff member?

• A) Collusion
• B) Job rotation
• C) Two-person control
• D) Separation of duties

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and short-term financial health of the business.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Salvage Value

The assessed salvage value of an asset at the close of its lifespan.

Pretax Return

The income earned by a company before taxes are deducted.