A Large Retail Enterprise Has Established a Policy That Requires

question 93

Multiple Choice

A large retail enterprise has established a policy that requires the paymaster to deliver all unclaimed payroll checks to the internal audit department at the end of each payroll distribution day. This policy was most likely adopted to

• A)ensure that employees who were absent on a payroll distribution day are not paid for that day.
• B)prevent the paymaster from cashing checks that are unclaimed for several weeks.
• C)prevent a bona fide employee's check from being claimed by another employee.
• D)detect any fictitious employee who may have been placed on the payroll.

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Definitions:

Long-term Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year, such as real estate or equipment.

Exchange Rate

The price of one currency expressed in terms of another currency, determining how much of one currency can be exchanged for another.

Canadian Dollars

The official currency of Canada, represented by the symbol CAD.

Trading Securities

Financial instruments like stocks or bonds held by a firm, primarily for the purpose of selling them in the near term to realize a gain.