The Purpose of Segregating the Duties of Hiring Personnel and Distributing

question 53

Multiple Choice

The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the

• A)human resources function from the controllership function.
• B)administrative controls from the internal accounting controls.
• C)authorization of transactions from the custody of related assets.
• D)operational responsibility from the recordkeeping responsibility.

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Definitions:

Average Accounting Return

A financial ratio that measures the average net income a company expects to earn from an investment compared to its initial cost.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Initial Investment

The amount of money used to start a business venture or project, not including operating costs or maintenance expenses incurred after the venture is operational.

Straight-line Depreciation

A method of depreciating fixed assets evenly across their useful life.