In the Weekly Computer Run to Prepare Payroll Cheques, a Cheque

question 11

Multiple Choice

In the weekly computer run to prepare payroll cheques, a cheque was printed for an employee whose employment was terminated the previous week.Which of the following controls, if properly used, would have been most effective in preventing this error or ensuring its prompt detection?

• A)A control total for hours worked, prepared from time-cards collected by the timekeeping department and compared to the payroll sheets.
• B)Requiring the accounting department to account for all pre-numbered cheques issued to the IT department for the processing of the payroll.
• C)The use of check digits on employee numbers.
• D)The use of a header label on the payroll input sheet.

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Definitions:

Common Share

A type of equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Par Value

The nominal value of a bond or stock as declared by the issuer, not always representing its current market price.

Journal Entries

Recorded transactions in the accounting books that track all financial activities of a business.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and a claim on profits in the form of dividends.